Crude oil futures traded higher on Monday morning after US President Donald Trump said he would delay the deadline for tariffs on goods from the European Union.
At 9.56 am on Monday, August Brent oil futures were at $64.44, up by 0.36 per cent, and July crude oil futures on WTI (West Texas Intermediate) were at $61.79, up by 0.42 per cent. June crude oil futures were trading at ₹5277 on Multi Commodity Exchange (MCX) during the initial hour of trading on Monday against the previous close of ₹5259, up by 0.34 per cent, and July futures were trading at ₹5243 against the previous close of ₹5228, up by 0.29 per cent.
A post by Trump on the social media platform Truth Social said: “I received a call today from Ursula von der Leyen, President of the European Commission, requesting an extension on the June 1st deadline on the 50 per cent Tariff with respect to Trade and the European Union. I agreed to the extension — July 9, 2025 — It was my privilege to do so. The Commission President said that talks will begin rapidly.”
This move helped ease concerns over a trade war with the European Union. A trade war would have impacted the global economic growth, which, in turn, would have impacted the demand for commodities such as crude oil.
In a separate post on Russia-Ukraine war, Trump said: “I’ve always had a very good relationship with Vladimir Putin of Russia, but something has happened to him. He has gone absolutely CRAZY! He is needlessly killing a lot of people, and I’m not just talking about soldiers. Missiles and drones are being shot into Cities in Ukraine, for no reason whatsoever. I’ve always said that he wants ALL of Ukraine, not just a piece of it, and maybe that’s proving to be right, but if he does, it will lead to the downfall of Russia! Likewise, President Zelenskyy is doing his Country no favors by talking the way he does. Everything out of his mouth causes problems, I don’t like it, and it better stop.”
In their Commodities Feed for Monday, Warren Patterson, Head of Commodities Strategy of ING Think, and Ewa Manthey, Commodities Strategist, said Russia stepped up its attacks on Ukraine, prompting Trump to say that he’s considering sanctions against Moscow, which could put Russian energy flows at risk.
On the June 1 meeting of the OPEC+ (Organisation of the Petroleum Exporting Countries and allies), they said the group will decide on output policy for July in that meeting. Last week, there were suggestions that the group is considering another sizable supply increase. “We’re assuming in our balance sheet that the group will agree to increase output by another 411,000 barrels a day in July. This should keep the market well supplied over the second half of this year,” they added.
June natural gas futures were trading at ₹317.20 on MCX during the initial hour of trading on Monday against the previous close of ₹314.80, up by 0.76 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), June jeera contracts were trading at ₹21120 in the initial hour of trading on Monday against the previous close of ₹21060, up by 0.28 per cent.
June guarseed futures were trading at ₹5182 on NCDEX in the initial hour of trading on Monday against the previous close of ₹5209, down by 0.52 per cent.
Published on May 26, 2025