Trump's EU Deal, Shortened Russia Deadline Causes Oil To Jump Over 2%

The brash billionaire has also cleared the way for Alaskan drilling - again: File Image/Pixabay

The growing awareness that U.S. president Donald Trump's tariffs are benefitting his country economically, along with the announcement that a trade deal had been reached with the European Union, caused oil on Monday to rise over 2 percent.

Prices were also said top have been buoyed by Trump shortening the deadline for Russia to end hostilities with Ukraine following the former Soviet Union stepping up its attacks on that country.

Brent was up $1.60, or 2.3 percent, at $70.04 per barrel, and West Texas Intermediate rose $1.55, or 2.4 percent, to $66.71.

The deal struck with the EU will see it pay 15 percent tariffs on most goods as well as buy more than $750 billion in U.S. energy, in addition to investing $600 billion more in the U.S. along with major military equipment purchases.

Meanwhile, based on Russia making a summer push to break through the 1,000-kilometre front line and its drones and missiles impacting in Ukrainian cities more than at any time in the past three years, Trump scrapped his plan to give Moscow 50 days to cease fire or face crippling sanctions -and imposed a new deadline of 10 days to agree to a peace deal.

Former Russian president Dmitry Medvedev and now the deputy chairman of the Security Council of Russia, said, "Trump's playing the ultimatum game with Russia: 50 days or 10… he should remember two thing, one, Russia isn't Israel or even Iran, and two, each new ultimatum is a threat and a step towards war - not between Russia and Ukraine, but with his own country."

Washington on Monday also announced that the busy Trump formally scrapped limitations on oil and gas development in Alaska's National Petroleum Reserve set by the previous administration, clearing the way for drilling across the 23 million acre expanse.

Secretary of the interior Doug Burgum stated, "The Trump administration is delivering certainty for industry, opportunity for Alaskans and real energy security for the American people."