- WTI price tumbles to near $62.75 in Monday’s Asian session.
- US and Russian officials were aiming to reach a deal to halt the war in Ukraine.
- Concerns over the impact of US tariffs also weigh on the WTI price.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $62.75 during the early Asian trading hours on Monday. The WTI remains under selling pressure after posting the steepest weekly losses since late June in the previous session. Oil traders brace for the American Petroleum Institute (API) Crude Oil stockpiles report, which is due later on Tuesday.
A potential meeting between President Donald Trump and Russian President Vladimir Putin to end sanctions weighs on the WTI price. Trump said that he would meet with Putin on Friday in Alaska to negotiate an end to the war in Ukraine.
Last week, Trump threatened to increase tariffs on India if it kept purchasing Russian oil. Higher US tariffs against many trade partners took effect last Thursday, fueling concerns over weaker global economic activity and sparking bearish sentiment among oil traders. This, in turn, might continue to undermine the black gold.
The Organization of Petroleum Exporting Countries and allies (OPEC+) agreed to boost oil production by 547,000 barrels per day (bpd) for September, the latest in a series of output hikes to regain market share. This might cap the upside for the WTI price.
Nonetheless, oil traders will keep an eye on the US Consumer Price Index (CPI) data for July, which will be published later on Tuesday. The US CPI is expected to show an increase of 2.8% YoY in July, while the core CPI is estimated to show a rise of 3.0% in the same report period. If the inflation data show surprise softer-than-expected outcomes, this could drag the US Dollar (USD) lower and lift demand for USD-denominated crude from foreign buyers.
