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Oil prices rose on Monday afternoon in Europe after US President Donald Trump said he would reduce the deadline for Russian President Vladimir Putin to reach a peace deal with Ukraine.
WTI was up around 2.2% at $66.50 a barrel, while Brent crude oil was up around 2% at $69.80, as of 15.00 CEST.
Trump issued the 50-day timeline to Putin in July, claiming that he would hit Russia with a 100% tariff if Moscow didnât end the war in Ukraine.Â
âIâm disappointed in President Putin, very disappointed in him. So weâre going to have to look and Iâm going to reduce that 50 days that I gave him to a lesser number,â Trump told reporters in Scotland on Monday.
âI think I already know the answer, whatâs going to happen,â Trump said. The president was preparing to meet UK Prime Minister Keir Starmer.
Oil prices had risen earlier in the day on Monday as investors reacted to news of a EU-US trade deal, announced on Sunday.
Among other provisions, the EU agreed to buy $750 billion of US energy products, including oil, LNG, and nuclear energy over three years.
The deal means that the EU will face a 15% tariff on most of its goods when Trumpâs tariff deadline ends on 1 August, rather than a threatened 30% rate. European stock markets also jumped during Monday morning trading on the news, before settling in the afternoon.
Trumpâs tariff threats have previously deflated oil prices this year as investors predicted that a potential economic slowdown could affect demand for oil. Geopolitical risk, on the other hand, has stoked prices in cases where investors have expected threats to supply. US attacks on Iranâs nuclear facilities, for example, prompted a spike in oil prices in June.
An OPEC+ committee meeting is taking place on Monday, where participants will decide on production policy for September.Â
Both the International Energy Agency and the US Energy Information Administration expect a strong oil surplus next year, with supply outpacing demand.
After securing a deal with the EU, Washington has now set its sights on negotiations with China. US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer are meeting with Chinese officials, including Chinese Vice Premier He Lifeng, on Monday in Stockholm.
China and the US agreed to temporarily lower reciprocal tariffs during a 90-day truce period, set to expire on 12 August. There are hopes that the two nations will be able to extend the grace period, with China currently taxing US goods at 10% and the US taxing Chinese goods at 30%.
