July 30, 2025

Oil prices climbed on Tuesday, driven by optimism about growth in economic activity following a recent U.S.-EU trade agreement and ongoing discussions about potential tariffs between the U.S. and China. Brent crude futures rose 24 cents to $70.28 a barrel, while U.S. West Texas Intermediate crude increased by 22 cents to $66.93 a barrel. Both oil contracts had settled more than 2% higher in the previous trading session, with Brent reaching its highest level since July 18. The trade deal negotiated between the U.S. and EU succeeded in avoiding a full-scale trade war, which could have significantly impacted global trade and reduced fuel demand. This agreement imposes a 15% import tariff on most EU goods, yet still provides confidence to the market regarding future fuel demand. Furthermore, optimism was bolstered by the possible extension of a trade truce between the U.S. and China, as senior economic officials from both nations engaged in over five hours of talks in Stockholm. Discussions are expected to continue. Concurrently, President Trump set a new deadline for Russia to progress in ending the Ukraine war. He indicated that Russia has '10 or 12 days' to make significant moves or face sanctions from the U.S. This ultimatum reignited concerns regarding the potential impact on Russian oil flows. AMZ senior commodity strategist Daniel Hynes highlighted that these worries are compounded by recent EU sanctions on Russia, which include a lowered price cap on their crude oil and restrictions on importing refined products sourced from Russian oil. The sentiment among traders reflects a careful balancing of optimism brought by the U.S.-EU trade discussions with the cautious uncertainty surrounding the conflicts and tensions in global trade. As oil prices stabilize, analysts will closely monitor any developments on the geopolitical front, especially regarding the U.S.-China talks and the Ukraine war, as these factors will continue to influence oil market dynamics.

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Tags: Oil prices, Trade agreements, Us-eu deal, Us-china tariffs, Ukraine war,