Brent climbed toward $62 a barrel after falling 1.7% in the previous session, and West Texas Intermediate traded above $58
| Photo Credit:
REUTERS

Oil rose after Donald Trump signaled a trade deal with a country he didn’t identify, as the US president faces political pressure following broad tariffs that rattled global markets.

Brent climbed toward $62 a barrel after falling 1.7 per cent in the previous session, and West Texas Intermediate traded above $58. Trump made the announcement in a Truth Social post, and said he plans to hold a news conference on Thursday, without providing any scope or details on the agreement. The New York Times reported the deal would be with the UK.

The news of a deal comes ahead of trade talks between US and Chinese officials this week, though Trump said on Wednesday that he’s unwilling to preemptively lower tariffs on China to jump-start negotiations.

Crude has been on a recent downward trajectory due to concerns around the potential hit to global growth from Trump’s sweeping tariffs, as well as recent OPEC+ decisions to boost idled output. American shale producers are cutting spending in the Permian Basin following the slide in oil prices.

“Peak demand destruction from tariffs and trade wars will likely be seen in the third quarter this year,” said Robert Rennie, head of commodity and carbon research at Westpac Banking Corp. in Sydney. Oil prices could trade in the “mid-to-high $50s” during the second half of the year, he added.

In the US, crude inventories fell for a second week to the lowest level since late March, according to the Energy Information Administration. Stockpiles at the oil storage hub at Cushing, Oklahoma, also shrank.

More stories like this are available on bloomberg.com

Published on May 8, 2025