Crude oil futures traded higher on Monday morning after the US and the European Union (EU) announced a trade agreement on Sunday.
At 9.58 am on Monday, October Brent oil futures were at $67.91, up by 0.37 per cent, and September crude oil futures on WTI (West Texas Intermediate) were at $65.40, up by 0.37 per cent.
August crude oil futures were trading at ₹5667 on Multi Commodity Exchange (MCX) during the initial hour of trading on Monday against the previous close of ₹5648, up by 0.34 per cent, and September futures were trading at ₹5617 against the previous close of ₹5601, up by 0.29 per cent.
The trade deal between the US and the EU introduces a 15 per cent tariff on European exports to the US. Trump had earlier threatened to impose a 30 per cent tariff on EU imports. The EU also commits to purchasing more US energy and military equipment.
In their Commodities Feed for Monday, Warren Patterson, Head of Commodities Strategy of ING Think, and Ewa Manthey, Commodities Strategist, said oil prices were trading firmer on Monday morning after the US and EU announced a trade deal, which will see most EU exports to the US facing a 15 per cent tariff.
The market worried that if talks had failed, 30 per cent tariffs would come into effect on August 1. That likely would’ve prompted retaliation from the EU.
As part of the deal, the EU agreed to buy $750 billion worth of US energy over three years. The EU continues to move away from Russian natural gas, with a roadmap to end all Russian gas imports by the end of 2027. The EU was already set to lean more heavily on the US for its energy needs.
They said that the oil market will face increased noise over the week around OPEC+ output policy. The group will decide on September output levels on August 3.
“The group may feel emboldened to go with yet another large supply hike for September, given that prices are holding up relatively well despite supply increases already announced in recent months. We expect that OPEC+ will at least complete the full return of 2.2 million barrels a day of the additional voluntary supply cuts by the end of September. This would work out to a supply hike in September of at least 280,000 barrels a day. However, there is clearly room for a more aggressive hike,” they said.
August natural gas futures were trading at ₹275.30 on MCX during the initial hour of trading on Monday against the previous close of ₹273.40, up by 0.69 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), August cottonseed oilcake contracts were trading at ₹3186 in the initial hour of trading on Monday against the previous close of ₹3217, down by 0.96 per cent.
August turmeric (farmer polished) futures were trading at ₹12862 on NCDEX in the initial hour of trading on Monday against the previous close of ₹12956, down by 0.73 per cent.
Published on July 28, 2025
