- WTI price gains traction to near $63.40 in Monday’s Asian session.
- Waning prospects for an immediate Russia-Ukraine peace deal boost the WTI price.
- Oil traders will focus on the API weekly crude oil stock report later on Tuesday.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $63.40 during the early Asian trading hours on Friday. The WTI edges higher after Ukraine drone attacks target Russian energy infrastructure. Traders brace for the release of the American Petroleum Institute (API) weekly crude oil stock, which is due later on Tuesday.
Russian officials said that Ukraine carried out a drone attack on Russia on Sunday, causing a significant fall in reactor capacity at one of the country’s largest nuclear power facilities and a massive fire at the Ust-Luga fuel export terminal. “Given the success that Ukraine is having with its targeting of Russian oil infrastructure … the risks for crude oil are shifting to the topside,” IG market analyst Tony Sycamore said.
The US Federal Reserve (Fed) Chair Jerome Powell appears to be laying the groundwork for a potential rate reduction in the September meeting. The Fed’s dovish tone could drag the US Dollar (USD) lower and support the USD-denominated commodity price.
Oil traders will closely monitor the developments surrounding the resolution between Russia and Ukraine. Any signs of progress in negotiations might ease supply concerns and cap the upside for the black gold, while the prospect of sanctions on Russian crude being lifted could boost the WTI price.
Russian Foreign Minister Sergey Lavrov stated on Sunday that Russian President Vladimir Putin “is ready to meet” with Zelenskyy when the agenda is ready for a summit. But he said that no meeting is currently planned.
