FX.co ★ Brent Surges Over 2%

Brent crude oil futures experienced a notable increase of over 2%, climbing past $65 per barrel on Monday. This rise marked a two-week high, spurred by an agreement between the US and China to halt most tariffs on each other's products. This significant trade breakthrough signaled a de-escalation of tensions between the globe's two largest oil consumers, thereby reducing concerns over oil demand. Reports suggest both countries consented to a 90-day tariff pause and agreed to a substantial tariff reduction, each slashing levies by 115%. On the other hand, oil prices faced downward pressure owing to OPEC+'s plans to ramp up output in May and June. Additionally, the prospect of a new US-Iran nuclear deal contributed to the bearish outlook, as it could alleviate apprehensions about potential global oil supply shortages. US and Iranian negotiators wrapped up discussions in Oman on Sunday, with plans for further talks underway.