International benchmark Brent fell on Tuesday and expanded the losses for the second straight session, plumbing two-week lows amid negative pressures due to concerns about global fuel demand.

Traders reduced their forecasts for demand growth due to the US-China trade war, with Barclays reducing its forecast for Brent price in 2025. 

Prices

Brent crude oil price fell 3.01% today to $63.55 a barrel, the lowest since April 11, with a session-high at $64.77.

Brent closed down 2.05% on Monday, the third loss in four days amid US-China trade uncertainty.

Global Demand 

A Reuters survey showed most economists believe US President Donald Trump’s efforts to restructure global trade through aggressive tariffs threaten the world with recession in 2025.

In response, China, the country most targeted by Trump’s tariffs, responded with 125% retaliatory tariffs on US products.

Therefore, experts sharply reduced their forecasts for demand on oil with negative consequences anticipated in the global energy markets.

OPEC+ 

Another factor pressuring oil prices is a recent Reuters report, which indicated that several OPEC+ countries are proposing another large production hike in June following the already big May output increase.

Grim Outlook

Barclays reduced its forecast for Brent price in 2025 by $4 to $70 a barrel, pointing to  the mounting trade tensions and OPEC+ focus on raising output and pushing for oversupplies.

Bitcoin rose on Tuesday and maintained the gains for the second straight session, as it trades near two-month high and targets the coveted $100,000 once more with positive sentiment gripping the crypto market. 

MicroStrategy has once again increased its bitcoin holdings to a record high, boosting the cryptocurrency’s institutional status as a trusted reserve currency.

The Price

Bitcoin rose 0.5% at Bitstamp today to $95,479, with a session-low at $94,279.

On Monday, bitcoin rose 1.4%, resuming gains after a two-day hiatus and approaching a two-month high at $95,857.

Crypto Market Value 

The market value of cryptocurrencies rose by $25 billion on Tuesday to a total of $3.090 trillion.

MicroStrategy

Through the X platform, MicroStrategy’s chairman Micheal Saylor announced a new round of bitcoin purchases amounting to 15,355 units, bringing the company’s holdings to a new record high.

The purchase occurred between April 21 and 26, with the company spending $1.42 billion in total, averaging $92,737 per unit.

After the new acquisition, the company now holds 553,555 units in total, worth $37.93 billion, with an average price of $68,519 per bitcoin.

The US dollar rose in European trade on Tuesday against a basket of major rivals, resuming the gains and on track for multi-week highs as concerns about a US recession receded, with increasing signals of impending trade deals between the US and its partners. 

Now investors await a batch of important US data, which would provide important clues on the odds of a Fed interest rate cut in the first half of the year.

The Index

The dollar index rose 0.4% today to 99.35, with a session-low at 98.94.

On Monday, the index lost 0.65% on profit-taking away from a week high at 99.94.

Trade Developments

US Treasury Secretary Scott Bessent stated on Monday that several trade partners provided “very good” proposals for trade deals to avoid tariffs, starting with India.

He said that recent steps by China to exempt some US goods from tariffs shows readiness to calm trading tensions.

The US administration is also expected to move on Tuesday to limit the scope of auto tariffs and parts to reduce the pressure on automakers. 

US Rates

Several Fed officials recently signalled there’s no need to cut interest rates soon as the Fed continues to analyze new data to gauge the impact of US tariffs on the economy.

According to the Fedwatch tool, the odds of a 0.25% Fed interest rate cut stand at only 9%, while the odds of such a cut in June stand at 63%.

Gold prices fell in European trade on Tuesday under pressure from the stronger dollar against a basket of major rivals.

It comes ahead of important US data later today, which could provide fresh pricing for the odds of future Fed rate cuts.

The Price

Gold prices fell 1.1% today to $3305 an ounce, with a session-high at $3348.

On Monday,  gold rose 0.7% and approached recent record highs at $3500.

US Dollar

The dollar index rose 0.4% on Tuesday, resuming gains against a basket of major rivals.

The gains come as concerns about a US recession receded, with trade tensions with major global partners calming down.

Trade Developments

US Treasury Secretary Scott Bessent stated on Monday that several trade partners provided “very good” proposals for trade deals to avoid tariffs, starting with India.

He said that recent steps by China to exempt some US goods from tariffs shows readiness to calm trading tensions.

The US administration is also expected to move on Tuesday to limit the scope of auto tariffs and parts to reduce the pressure on automakers. 

US Rates

Several Fed officials recently signalled there’s no need to cut interest rates soon as the Fed continues to analyze new data to gauge the impact of US tariffs on the economy.

According to the Fedwatch tool, the odds of a 0.25% Fed interest rate cut stand at only 9%, while the odds of such a cut in June stand at 63%.

SPDR

Gold holdings at the SPDR Gold Trust remained unchanged yesterday at $946.27 tons, the lowest since April 9.