FX.co ★ Oil Falls from 3-Week High

Brent crude oil futures declined by over 1% to $68 per barrel on Tuesday, following a nearly three-week high recorded in the previous session. This dip comes as traders keep a keen eye on developments in the ongoing Russia-Ukraine conflict. The rise on Monday was driven by fears of potential supply disruptions after Ukraine targeted Russian power and energy facilities with drone strikes on Sunday. Additionally, US President Donald Trump issued a warning about the possibility of further sanctions on Moscow if there isn't any movement towards a peace agreement within the next two weeks. Traders are also focusing on the implications of a 25% tariff on Indian purchases of Russian oil, which is scheduled to take effect on Wednesday. On the demand side, there is support stemming from anticipation of a more relaxed US monetary policy. This follows comments from Federal Reserve Chair Jerome Powell on Friday, hinting at a potential rate cut in September, which might stimulate economic growth and increase energy demand. Meanwhile, market participants are also awaiting the American Petroleum Institute's weekly crude oil inventory data, expected later today.