Oil Prices Extend Gains on US-UK Trade Deal
In the global commodity market, oil prices extended gains Thursday on expectations that the US-UK trade deal could pave the way for similar agreements, as US and Chinese officials prepare to meet for talks later this week.
International benchmark Brent crude increased by around 0.42%, trading at $63.28 per barrel, up from $63.01 at the previous session’s close. The US benchmark West Texas Intermediate rose by about 0.43%, reaching $60.20 per barrel, compared to its prior session close of $59.94.
Oil prices continued to increase amid expectations that the US-UK trade agreement could pave the way for similar deals with other countries. British Prime Minister Keir Starmer and US President Donald Trump on Thursday announced the new trade and economic agreement, marking what Starmer called “a fantastic, historic day.”
Starmer said that the US will exempt the UK from steel and aluminum tariffs and lower tariffs on automobiles to 10%. Trump decided to remove the 25% tariff on UK steel and aluminum while also reducing the tariff on most car exports from 27.5% to 10%.
The new car tariff applies to the first 100,000 vehicles exported from the UK to the US annually, with 101,000 vehicles having been exported last year. Trump also signaled a potential deal with China.
Responding to a reporter’s question about whether he would lower tariffs on China if trade talks this weekend went well, he said, ‘Well, it could be.’ He also said that the US is very close to making more trade deals. Noting that US Treasury Secretary Scott Bessent will meet with Chinese officials in Switzerland, Trump said this is very important.
The trade deals are expected to ease pressure on global trade and boost oil prices by improving demand prospects. Meanwhile, concerns that escalating tensions between India and Pakistan could disrupt energy supply chains are also lending support to oil prices.
Experts say the risk of a direct attack on merchant ships remains low, but heightened tensions could threaten supply security, particularly in regions with concentrated naval activity.
In addition, analysts estimate that India may ramp up crude oil purchases for strategic reasons amid potential supply chain shocks, a move that could put short-term upward pressure on prices.
Tensions between India and Pakistan escalated this week after India announced “Operation Sindoor” late Tuesday night, saying it struck “terrorist infrastructure’ at nine locations in Pakistan.
The Pakistani military said 31 people were killed in the Indian missile attacks and cross-border firing in the Pakistan-administered Kashmir. At least 16 people were killed along the Line of Control in the Indian-administered Kashmir, according to officials. #Oil Prices Extend Gains on US-UK Trade Deal Money Market Rates Mixed as Banks Put Excess Cash with CBN
