WTI holds steady above $70.50, eyes on Russia-Ukraine peace deal

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• WTI price may decline as supply concerns ease amid optimism over a potential Russia-Ukraine peace deal. 

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• Trump administration officials are set to meet with their Russian counterparts in Saudi Arabia on Tuesday. 

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• Global Oil demand has risen to 103.4 million barrels per day, up 1.4 million bpd from the previous year.

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West Texas Intermediate (WTI) Oil price rebounds from losses in the previous session, trading around $70.60 per barrel during Monday’s Asian hours. However, crude Oil prices faced headwinds as optimism surrounding a potential peace deal between Russia and Ukraine eased supply concerns. The possible removal of sanctions on Moscow could boost global energy supplies.

According to BBC sources, Trump administration officials are scheduled to meet with their Russian counterparts in Saudi Arabia on Tuesday to discuss a potential peace agreement. This meeting marks a significant step in restoring US-Russia relations, following last week’s breakthrough phone call between President Donald Trump and Russian leader Vladimir Putin.

Meanwhile, delays in United States (US) reciprocal tariffs helped stabilize Oil prices as investors grew more optimistic about potential trade agreements. Last week, Trump directed commerce and economic officials to evaluate reciprocal tariffs on countries that impose duties on US goods, with recommendations due by April 1.

Reuters cited JPMorgan analysts that global Oil demand has surged to 103.4 million barrels per day (bpd), an increase of 1.4 million bpd from the previous year. Analysts also said, “Initially sluggish demand for mobility and heating fuels picked up in the second week of February, suggesting the gap between actual and projected demand will soon narrow.”

Additionally, US Treasury Secretary Scott Bessent told Fox Business on Friday that the US intends to cut Iran’s Oil exports to less than 10% of current levels as President Trump intensifies his “maximum pressure” campaign on Tehran’s nuclear program. “We are committed to reducing Iran’s Oil exports back to the 100,000 barrels per day level seen during Trump’s first term,” Bessent stated.