Crude oil prices surge above $64.45 as U.S. extends EU trade talks deadline

https://www.century.ae/en/vijay-valecha/"> Vijay Valecha , May 26, 2025, Economy Middle East

Oil prices gained in early Asian trade on Monday after U.S. President Donald Trump extended a deadline for trade talks with the European Union, alleviating concerns regarding U.S. tariffs on the bloc that could negatively impact the global economy and fuel demand.

Brent crude futures rose by 37 cents, or 0.6 percent, to $65.15 a barrel by 00:01 GMT (currently above $64.45), while U.S. West Texas Intermediate crude increased by 34 cents, or 0.6 percent, to $61.87 a barrel (currently above $61.75).

Trump stated he agreed to extend the deadline for trade talks with the European Union until July 9, following comments from Ursula von der Leyen, president of the European Commission, who indicated that the bloc needed additional time to finalize a deal.

Current market price and indicators

https://www.century.ae/en/vijay-valecha/"> Vijay Valecha , chief investment officer, Century Financial, remarked to Economy Middle East, highlighted that since breaking out on May 9, WTI has been trading within a narrow range of $60.08 to $64.20. As of Monday, it was priced at $61.77, forming a doji-like candlestick that suggests ongoing indecision in the market. Immediate support was noted at $61.48, where the 9- and 21-SMAs converge on the 4-hour chart, followed by key psychological support at $60. Resistance was anticipated between $62.75 and $63.36, marked by the mid-May highs and the 50-SMA on the daily chart.

https://www.century.ae/en/vijay-valecha/"> Valecha further noted that oil prices were steady on Monday after Trump extended the EU trade deal deadline to July 9 and held weekend talks with Iran regarding its nuclear program. He mentioned that these developments might provide only a short-lived reprieve for oil prices. However, https://www.century.ae/en/vijay-valecha/"> he cautioned that potential new sanctions on Russian crude, following fresh strikes on Ukraine, could unsettle markets.

“Since breaking out on May 9, WTI has traded within a narrow range of $60.08 to $64.20. On Monday, it sits at $61.77, forming a doji-like candlestick that indicates indecision persists. Immediate support lies at $61.48, where the 9- and 21-SMAs converge on the 4-hour chart, followed by key psychological support at $60. Resistance is expected between $62.75 and $63.36, marked by mid-May highs and the 50-SMA on the daily chart.”

OPEC+ output expectations limit gains

Brent and WTI extended their gains after settling 0.5 percent higher on Friday, as limited progress in U.S.-Iran nuclear talks eased worries about more Iranian oil returning to global markets, and as U.S. buyers took positions ahead of the three-day Memorial Day weekend.

https://www.century.ae/en/vijay-valecha/"> Valecha indicated that the focus is now on Sunday’s OPEC+ meeting, where the cartel is expected to raise output by 411,000 barrels per day in July, matching the increases seen in May and June and significantly exceeding the initially planned hike of 137,000 barrels. He concluded that together, these factors may limit any substantial upside in oil prices and highlighted the uncertainty reflected in last week’s doji candlestick, which indicates market indecision.

Prices were also supported by data from energy services firm Baker Hughes, which revealed that U.S. firms, pressured by lower oil prices, reduced the number of operating oil rigs by 8 to 465 last week, marking the lowest level since November 2021.

However, gains were limited by expectations that the Organization of the Petroleum Exporting Countries and their allies, known as OPEC+, might decide to increase output by another 411,000 barrels per day (bpd) for July during next week’s meeting.

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