Brent oil futures for January dropped 0.3 per cent to $63.89 a barrel

Oil prices dropped 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 as well as Ukrainian attacks on Russian refineries.

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 dropped 0.3 per cent to $63.89 a barrel, while West Texas Intermediate crude futures shed 0.3 per cent to $59.88 a barrel by 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.

The dollar strengthened 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 U.S. dollar, given that it makes them more expensive for foreign buyers.