Crude Oil Prices Up in Asia as U.S. Tariff Delay Eases Trade Tensions

On Monday, May 26, 2025, Crude Oil prices saw modest gains in early Asian trade, buoyed by a temporary de-escalation in U.S.-EU trade tensions after President Donald Trump postponed the imposition of steep tariffs on European goods.

However, the upward momentum was impacted by the growing concerns over a potential supply glut, as OPEC and its allies (OPEC+) weigh another production increase for July.

As of 21:18 ET (01:18 GMT), Brent crude futures for July delivery edged up 0.2% to $64.93 per barrel, while West Texas Intermediate (WTI) crude rose 0.3% to $61.69 per barrel. At 10:15 AM IST, Brent Crude futures were up 0.26% to $65.04.

Trump Postpones Tariffs, Easing Market Jitters

In a move that eased tensions in global markets, President Trump on Sunday extended the deadline for his proposed 50% tariffs on European Union imports, shifting the date from June 1 to July 9.

The decision followed a constructive phone call with European Commission President Ursula von der Leyen, during which both sides agreed to intensify negotiations in the coming weeks.

The extension eased fears of an imminent trade escalation, offering a brief reprieve for global economic sentiment and supporting energy demand projections. It also provides a diplomatic window to potentially resolve longstanding trade frictions—an outcome welcomed by investors.

Oil Markets Brace for OPEC+ Decision, Iran Deal Progress

Looking ahead, all eyes are on the upcoming OPEC+ meeting scheduled for June 1, where the group is expected to deliberate on further increasing output. According to a Bloomberg report, the coalition is considering a production hike of 4,11,000 barrels per day in July, though a final decision has yet to be reached.

The meeting is viewed as a key point for oil markets, with any decision on output likely to sway global price dynamics.

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OPEC+ has already begun rolling back previous supply curbs with incremental increases in May and June. Another boost could exacerbate oversupply concerns, especially as geopolitical developments unfold.

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