FX.co ★ Oil Falls for 4th Session

On Tuesday, Brent crude oil futures dipped below $64 per barrel, the lowest level observed since April 2021, and extended their losing streak to four consecutive days. This decline was driven by escalating concerns over the intensifying US-China trade conflict, which has unsettled markets and dampened forecasts for global demand. President Trump has proposed an additional 50% tariff on Chinese goods, escalating existing trade tensions, while Beijing has pledged to "fight to the end." In response, Chinese importers are anticipated to cease purchasing U.S. crude, opting instead for sources from Russia, the Middle East, and Africa. Simultaneously, the European Union is contemplating a wide array of retaliatory measures against U.S. tariffs, further complicating the global trade and energy scenario. Concurrently, OPEC+ compounded the pressure by announcing an output increase that exceeded expectations, thereby diminishing hopes for achieving market equilibrium.