WTI price climbs to around $62.80 in Wednesday’s early Asian session.
Rising geopolitical risks and supply fears support the WTI price.
OPEC+ decided to raise output by 411K bpd in July.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $62.80 during the Asian trading hours on Tuesday. The WTI price extends the rally to two-week highs amid persistent geopolitical tensions and a weaker US Dollar (USD). Traders will take more cues from the EIA Crude Oil stockpiles report, which is due later on Wednesday.
A Russian official said on Tuesday that the work on reaching a settlement to end the war in Ukraine was complicated and that it would be wrong to expect any imminent decisions but that it was waiting for Ukrainian reaction to its proposals. Meanwhile, Iran is poised to reject a US proposal to end a decades-old nuclear dispute after the US draft insisted that Tehran would have to suspend the enrichment of uranium inside Iran.
"Risk premium has ramped up this week as the prospect of a Russia/Ukraine ceasefire as well as an Iranian nuclear deal now appear to have been pushed back for weeks if not months," said analysts at energy advisory firm Ritterbusch and Associates.
The Organization of the Petroleum Exporting Countries and its allies (OPEC+) decided to increase their production again on Saturday. OPEC+ planned to raise production at a steady rate by 411,000 barrels per day (bpd) in July, following an increase in May and June. The group noted in a statement that a “steady global economic outlook and current healthy market fundamentals, as reflected in the low oil inventories” was its reasoning for the July increase.
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