Oil prices fell in Asian trade on Tuesday, reversing course from the prior session as markets remained on edge over a looming supply glut, while some resilience in the dollar also weighed on prices.
Oil found some strength in the prior session as U.S. lawmakers marked some progress towards ending a prolonged government shutdown, while Ukrainian attacks on Russian refineries also helped.
But markets remained on edge over a supply glut in the coming year, while some resilience in the dollar also stalled oil’s latest advance.
Brent oil futures for January fell 0.3% to $63.89 a barrel, while West Texas Intermediate crude futures fell 0.3% to $59.88 a barrel by 20:49 ET (03:49 GMT).
While oil prices were trading off recent lows, they were still nursing losses so far in 2025, on concerns over a supply glut and weakening global demand. Oversupply fears stem chiefly from a slew of production increases by the Organization of Petroleum Exporting Countries and allies this year.
Dollar steadies as markets look to end of US shutdown The dollar firmed slightly in Asian trade on Tuesday, extending mild overnight gains.
Strength in the dollar came as efforts to end a prolonged U.S. government shutdown yielded some progress, as Senate lawmakers voted to consider a bill releasing more government funding.
The shutdown was a major point of anxiety for oil markets, especially as it disrupted air travel across the world’s largest fuel consumer.
Strength in the dollar also tends to pressure commodities priced in the greenback, given that it makes them more expensive for foreign buyers.
Ukraine-Russia strikes, US sanctions impact in focus Ukraine over the weekend launched drone attacks against more of Russia’s energy infrastructure, prompting retaliatory strikes by Moscow.
The war– which entered its third year in 2025– showed few signs of easing, especially as U.S. attempts to broker a ceasefire fell flat.
But the conflict has offered some support to oil prices, especially as Ukrainian strikes disrupted Russian energy production, while the U.S. attempted to coerce Moscow into a ceasefire with more sanctions on its oil industry.
