Oil prices rose in the global commodities market on Monday as geopolitical risks and mixed supply signals continued to influence energy markets.
Brent crude, the international benchmark, traded at $70.48 per barrel, up 0.17% from Friday’s close of $70.36, while West Texas Intermediate (WTI) rose by 0.2% to $68.59 per barrel from $68.45.
The oil market remains focused on the delicate balance between supply and demand. Last week, OPEC+ announced a larger-than-expected production increase for August, adding downward pressure on prices. However, a report from the International Energy Agency flagged tighter-than-anticipated supply, while potential new US sanctions on Russia further supported prices.
Investor sentiment was also influenced by remarks from US President Donald Trump about imposing tariffs on the European Union, Mexico, and Canada, stoking concerns over renewed global trade tensions. Analysts caution that higher tariffs could dampen global economic growth, potentially affecting oil demand.
Expectations that the US Federal Reserve may ease monetary policy provided additional support for oil prices, as lower interest rates could weaken the dollar and boost oil demand.
Despite the upward movement, concerns over potential oversupply and global trade uncertainties kept gains in check. Analysts noted that while geopolitical risks and positive US demand data are providing support, lingering trade tensions and OPEC+ production decisions will continue to shape the oil market in the near term.
