Crude %Oil prices are up 3% on July 28 on news that the U.S. has reached a trade deal with the European Union (EU) and President Donald Trump announced a two-week deadline for Russia to reach a peace deal with Ukraine.
Brent crude oil, the international standard, is up 2.48% at $70.14 U.S. a barrel, while West Texas Intermediate (WTI) crude oil is at $66.84 U.S. a barrel, up 2.60%.
Crude prices are also getting a lift on reports that the U.S. may extend its tariff pause with China, reducing concerns of potentially higher duties that would limit economic growth.
The rise in crude price is sending the stocks of oil majors such as %Chevron (NYSE: $CVX), %ExxonMobil (NYSE: $XOM), %BritishPetroleum (NYSE: $BP) and %Shell (NYSE: $SHEL) higher as well.
America and the European Union struck a trade agreement that will impose a 15% import tariff on most EU goods, half the threatened rate.
The deal averts a bigger trade war between two allies that account for almost one-third of global trade and could have hurt worldwide oil demand.
Also, senior U.S. and Chinese negotiators will meet in Stockholm on Monday aiming to extend a truce keeping sharply higher tariffs at bay ahead of an Aug. 12 deadline.
And President Trump said he is reducing the 50-day deadline he gave Russian President Vladimir Putin to reach a peace deal with Ukraine.
Trump now says he is shrinking that deadline to 10 or 12 days. If no peace deal is reached, Russia will face massive “secondary tariffs” on its trade partners, according to the president.
Prior to July 28, oil prices had been at their lowest level in three weeks as global trade concerns weighed on energy markets.
The Organization of the Petroleum Exporting Countries and its allies (OPEC+) is set to meet on July 28 and expected to maintain its existing plans to raise oil output by 548,000 barrels per day starting in August.
Analysts at %JPMorganChase (NYSE: $JPM) say global oil demand rose by 600,000 barrels per day in July, while global oil stocks rose 1.6 million barrels per day.
