Oil prices are recovering from their declines, with the US-EU and Russia dispute looming in the background.

Oil prices are rising on the New York Mercantile Exchange after last week marked its first week of declines since early July. Investors are focusing on US trade agreements, including those with the European Union, and EU efforts to restrict Russian energy exports, including oil, brokers report.

A barrel of West Texas Intermediate crude oil for delivery on VIII is trading at $67.69 on the NYMEX in New York, up 0.52 percent.

Brent on ICE is trading at USD 69.57 per barrel on September, after a 0.42% increase on Monday and a 1.5% decline last week.

A week ago, European Commission President Ursula von der Leyen announced that the European Union would extend the suspension of retaliatory measures against the United States until early August. They were originally scheduled to take effect Monday night.

The tariffs include 25 percent tariffs on US goods imported into the EU, worth a total of €21 billion. The list includes agricultural products such as poultry, fruit, nuts, and soybeans, as well as motorcycles and yachts.

These measures were announced – and simultaneously suspended – in April in response to US 25% tariffs on steel and aluminum.

Now the EU is preparing a retaliatory plan in the face of a possible hardening of the US trade stance.

EU officials are due to meet this week to develop a roadmap for responding to a possible no-deal trade scenario with the US and President Donald Trump, whose negotiating position on EU tariffs could be strengthened ahead of the August 1 deadline.

There is now a widespread belief among EU officials that the US wants tariffs higher than 10% on EU goods with a shrinking number of exceptions, limited to aviation, some spirits and specific equipment the US needs.

Meanwhile, the EU continues to take steps to limit the export of Russian energy resources, including crude oil.

EU ministers for Europe adopted on Friday in Brussels the 18th package of EU sanctions against Russia for its invasion of Ukraine.

The plan includes imposing restrictions on another 105 ships from Russia's so-called shadow fleet, their owners, and limiting Russian banks' access to financing. According to EU foreign policy chief Kai Kallas, this is one of the harshest sanctions packages since the beginning of the war.

The British Foreign Office announced on Friday that the United Kingdom is joining new sanctions against Russia announced earlier that day by the European Union, which include lowering the price cap on Russian oil exports. The cap will fall from $60 per barrel to $47.60.

"The fact that the US has not yet backed the new EU oil price cap could certainly make it harder to enforce," said Robert Rennie, head of commodities and carbon research at Westpac Banking Corp.

"However, Friday's EU ban on imports of petroleum products made from Russian crude oil will deepen product shortages in the West," he added.

Analysts point out that oil prices have been in an upward trend since early May, although benchmark Brent crude oil has currently lost about 7% since the beginning of this year, as Donald Trump tightens US trade policy and OPEC+ countries ease supply restrictions. Oil prices have also experienced some disruptions due to events in the Middle East, among other factors. (PAP Biznes)

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