WTI Oil Holds Above $61.30 on Easing Trade Tensions, Middle East Unrest

WTI Oil Rises Above $61.30 Amid Easing Global Trade Tensions and Geopolitical Risks

WTI Crude oil prices climbed on Monday, holding firmly above $61.30 per barrel and reaching around $61.50 during early European trading. The gains are supported by easing trade tensions between the US and the European Union, along with rising geopolitical instability in the Middle East.

US President Donald Trump postponed the planned 50% tariffs on EU imports, initially set to take effect on June 1, pushing the deadline to July 9 following a phone call with European Commission President Ursula von der Leyen. Markets welcomed this move with relief, as a US-EU trade conflict could have significantly slowed global economic growth and reduced oil demand.

Geopolitical concerns also underpin oil prices, with ongoing Israeli airstrikes in the Gaza Strip. Recent reports indicate a school attack that killed 36 people, mostly children, escalating tensions in the region. Additionally, stalled US negotiations with Iran add further uncertainty to the market.

However, fears of oversupply limit further gains. Members of the OPEC+ cartel are reportedly considering increasing oil production quotas from July to meet anticipated higher demand during the summer months. This potential supply boost is causing traders to remain cautious.

Technical indicators currently show no clear momentum, with traders awaiting further updates from OPEC+ and upcoming economic data to assess the market direction.