Oil prices held steady in Monday’s quiet trading session, as investors focused on easing trade tensions between the European Union and the United States, as well as the upcoming OPEC+ meeting expected to decide output levels for July.
Brent crude hovered below $65 per barrel, while West Texas Intermediate (WTI) stayed near $61, with both markets experiencing low volumes due to holidays in London and New York.
One key factor calming the market was news that Brussels had agreed to accelerate trade talks with Washington, days after sharp criticism from President Donald Trump. The positive gesture from the EU helped ease fears of a renewed transatlantic tariff battle, which had weighed on global market sentiment.
Since mid-January, crude oil prices have been trending lower, mainly due to concerns over global economic fallout from widening trade conflicts. Tariffs imposed by the U.S. and retaliatory measures from countries like China have created uncertainty around demand growth, pressuring oil prices.
At the same time, OPEC and its allies are gradually loosening previous output cuts, adding to concerns about oversupply. According to sources familiar with the matter, the group has brought forward a key video conference meeting to May 31, where they will finalize production targets for eight major oil-producing countries for July.
Preliminary discussions indicate that OPEC+ may approve a third straight month of increased production. The group believes such a move is necessary to meet recovering demand, but it could also weigh on oil prices if demand fails to keep pace.
In summary, the oil market is balancing between cautious optimism over trade negotiations and lingering concerns over future supply-demand dynamics. While news of improved EU-US dialogue offers temporary relief, rising supply and global economic uncertainty continue to cap further price gains.
