Oil prices slump nearly 4%.
Oil prices fell sharply in Asian trade on Monday after the OPEC+ signalled over the weekend that it will further increase production in the coming months, heralding a potential supply glut.
The prospect of higher supplies and weakening demand weighed heavily on crude, which was already nursing steep losses so far in 2025. Monday’s losses put oil back in sight of a four-year low hit in early-April.
Brent oil futures for June fell 3.6% to $59.10 a barrel, while West Texas Intermediate crude futures fell 3.7% to $55.68 a barrel by 20:37 ET (00:37 GMT).
The OPEC+ hike largely offset concerns over heightened tensions in the Middle East, following threats from Israeli Prime Minister Benjamin Netanyahu threatened more action against Iran.
OPEC+ announces bigger-than-expected June output hike
The Organization of Petroleum Exporting Countries and allies (OPEC+)- a group that makes up a bulk of global oil production- agreed to raise output by 411,000 barrels per day from June, during a meeting over the weekend.
Taiwan dollar soars to 2-yr high.
The Taiwan dollar raced to its strongest level in over two years on Monday, extending a stellar run of recent gains as traders bet on a U.S. trade deal while also piling into local stock markets.
The Taiwan dollar’s TWDUSD pair- which gauges the amount of TWD required to purchase one dollar, slid 3.2% to 29.752 TWD, briefly hitting its lowest level since April 2022.
The TWD’s move came as Taiwanese officials engaged in trade talks with their U.S. counterparts over avoiding the imposition of steep, “reciprocal” tariffs by Washington against Taipei.
Traders were seen speculating that the U.S. could demand a strengthing in some Asian currencies to improve its trade standing with regional economies, although no such direct signals had been provided.
Gold prices firm as dollar dips.
Gold prices rose in Asian trading on Monday as a weaker dollar lent support, though gains were capped by optimism over potential U.S.-China trade talks and investor caution ahead of the Federal Reserve’s interest rate decision later this week.
As of 00:18 ET (04:18 GMT), Spot Gold rose 0.5% to $3,255.95 per ounce, while Gold Futures expiring in June advanced 0.7% to $3,266.67 an ounce.
The modest rebound follows a 2% pullback last week due to rising risk appetite in global markets amid signs of easing trade tensions between the world’s two largest economies.
US-China trade negotiation hopes, Fed caution limit gains
China on Friday said it was evaluating the possibility of trade talks with the U.S., stating that any dialogue must be based on sincerity and the removal of unilateral tariffs.
The Trump administration has also reached out to China to initiate trade talks, Chinese media reports showed last week.
Hopes of dialogue over trade tensions have eased some market fears, reducing the immediate appeal of safe-haven assets like gold.
Investors were also treading carefully ahead of the Fed’s policy meeting starting later this week.
The Fed is expected to keep interest rates unchanged as the policymakers have adopted a cautious stance to assess the impact of Trump tariffs on inflation.
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