WTI attracts some buyers above $62.00 on weaker US Dollar, modest OPEC+ output hike decision

• WTI price edges higher to near $62.15 in Tuesday’s early European session.

• OPEC+ members agreed to lift output by 137,000 bpd from October. 

• Trump said European leaders will visit the US over the Russia-Ukraine conflict. 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $62.15 during the early Asian trading hours on Tuesday. The WTI trades in positive territory for the second consecutive day on a weaker US Dollar (USD) after the Organization of Petroleum Exporting Countries and its allies (OPEC+) raised its production at a lower rate than expected.

OPEC+ agreed on Sunday to raise its crude production by 137,000 barrels per day (bpd), starting in October. This increase is significantly lower than the 555,000 bpd that the group decided to boost output in September and August and the 411,000 bpd in June and July.

Additionally, the new potential sanctions on buyers of Russian oil could disrupt crude flows and contribute to the WTI’s upside. US President Donald Trump said on Sunday that the administration is prepared to move to a second phase of sanctions targeting Russia or its oil buyers. Trump added that individual European leaders would visit the US on Monday and Tuesday to discuss how to resolve the conflict.

"Expectations of tighter supply from potential new U.S. sanctions on Russia are also lending support," said Toshitaka Tazawa, an analyst at Fujitomi Securities.

Oil traders brace for the release of the American Petroleum Institute (API) weekly crude oil stock report, which will be published later on Tuesday. On Wednesday, the attention will shift to the US Producer Price Index (PPI) inflation data for August. In case of a hotter-than-expected inflation, this could lift the Greenback and weigh on the USD-denominated commodity price in the near term.