FX.co ★ Brent Prices Erase Early Gains

Brent crude oil futures dropped to $62.9 per barrel on Tuesday, reversing earlier gains, as investors kept a close eye on the evolving trade relations between the United States and China. US Treasury Secretary Scott Bessent confirmed on Monday that plans for President Trump to meet with Chinese President Xi Jinping in South Korea later this month are still proceeding despite renewed trade tensions between the two economic powerhouses. In parallel, Trump has indicated that he is contemplating the provision of long-range Tomahawk missiles to Ukraine, escalating concerns over possible further disruptions in Russian oil supply. On the other hand, any potential increase in oil prices was tempered by easing tensions in the Middle East; this follows the release of Israeli hostages by Hamas and the subsequent freeing of Palestinian prisoners by Israel. Additionally, persistent concerns about an oversupply in the market exerted further downward pressure, with production levels from both OPEC and non-OPEC producers continuing to rise.