FX.co ★ Oil Falls Toward 2-Month Low

WTI crude oil futures decreased to $63.5 per barrel on Tuesday, nearing the two-month low of $62.77 reached the previous week. The decline followed President Trump's decision to extend the US–China tariff truce by 90 days. Investors are also closely watching the upcoming US–Russia discussions regarding Ukraine. Trump tempered expectations for a significant advancement, referring to the meeting as an opportunity to "feel out" the potential for peace. In contrast, Ukrainian President Zelensky firmly opposed any negotiations that involve ceding territory. A potential agreement could mitigate risks to Russian oil supply, although uncertainties remain. Separately, OPEC forecasted a more constrained oil market by 2026, attributing this to stronger demand and slower growth in non-OPEC production. Focus now shifts to monthly reports from the US Energy Department and the International Energy Agency (IEA) for further insights into market equilibrium. Additionally, recent US inflation figures have strengthened the anticipation that the Federal Reserve may soon implement interest rate cuts.