FX.co ★ Brent Prices Erase Early Gains

Brent crude oil futures experienced a decline to $67.2 per barrel on Tuesday, reversing earlier gains prompted by concerns over potential supply disruptions from Russia due to ongoing Ukrainian attacks on its energy infrastructure. Over the weekend, an assault by Ukraine resulted in the closure of a crucial processing unit at Russia's Kirishi refinery. This incident follows another recent strike on the Primorsk oil terminal. Moreover, there are reports that the European Union is contemplating sanctions against companies in India and China that are facilitating Russia's oil trade as part of a new package of restrictions. On Monday, U.S. Treasury Secretary Scott Bessent stated that the administration would not impose further tariffs on Chinese goods to deter China's purchase of Russian oil unless the EU imposes significant duties on China and India. In the Middle East, Israel initiated a ground offensive in Gaza City on Monday, exacerbating supply risks. Meanwhile, traders are preparing for an expected interest rate reduction from the U.S. Federal Reserve this week, a move that could potentially increase fuel demand.