- WTI price drifts higher to near $57.85 in Tuesday’s early European session.
- US-led talks to end the war in Ukraine failed to yield a breakthrough.
- The API crude oil stockpiles report is due later on Tuesday.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $57.85 during the early European trading hours on Tuesday. The WTI price extends the rally amid the lack of a breakthrough on a peace deal in Ukraine and geopolitical risks.
US President Donald Trump said on Sunday that he made “a lot of progress” in talks with Ukrainian President Volodymyr Zelenskiy over a possible peace deal. Nonetheless, Trump stated that there’s no apparent breakthrough on the flashpoint issue of territory, and it might take a few weeks to get it done.
Russia accused Ukraine of launching a drone strike on the Russian presidential residence in northern Russia, prompting Moscow to reconsider its stance in peace negotiations, per Reuters. Ukraine dismissed Russian statements about the drone attack, and its foreign minister said Moscow was seeking “false justifications” for further strikes against its neighbor. Dented peace hopes in Ukraine could provide some support to the WTI price in the near term.
On the other hand, concerns about a global supply glut could weigh on the WTI price. The Organization of the Petroleum Exporting Countries and its allies (OPEC+) agreed to a modest production hike of 137,000 barrels per day (bpd) for December.
Traders will take more cues from the release of the American Petroleum Institute (API) crude oil stockpiles report, which will be released later on Tuesday. A larger-than-expected crude oil inventory draw indicates stronger demand and could boost the WTI price, while a bigger build than estimated signals weaker demand or excess supply, which might drag the WTI price lower.
