West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $57.65 during the early Asian trading hours on Tuesday. The WTI price is drifting higher amid ongoing geopolitical risks.
Traders are awaiting the release of the American Petroleum Institute (API) crude oil stockpiles report on Tuesday, hoping for fresh impetus. According to a Reuters report on Monday, Russia has accused Ukraine of launching a drone strike on the Russian presidential residence in northern Russia. This attack has prompted Moscow to reconsider its stance in peace negotiations.
Ukraine, however, has dismissed the Russian claims about the drone attack. The Ukrainian foreign minister stated that Moscow is seeking “false justifications” for further strikes against its neighbor. The dented peace hopes in Ukraine could support the WTI price in the near term.
“Unless Russia surprises the world by backing away from previous demands regarding territory and security guarantees, we are looking for the complex to edge higher through the rest of this week and next week,” said oil trading advisory firm Ritterbusch and Associates.
Adding to the tensions, US President Donald Trump warned on Monday that the US would launch another major military strike on Iran if Tehran is found rebuilding its ballistic missile or nuclear weapons programs. He also issued a stark ultimatum to Hamas to disarm or face severe consequences. Renewed tensions with Iran raise the prospect of higher oil risk premiums, which in turn could lift the WTI price.
On the other hand, concerns about a global oil surplus may limit any upside gains. The Organization of the Petroleum Exporting Countries and its allies (OPEC+) recently agreed to a modest production hike of 137,000 barrels per day (bpd) for December, contributing to worries about a potential supply glut.
As geopolitical events unfold and market dynamics shift, traders will be closely monitoring developments that could impact WTI crude oil prices in the coming days.
https://bitcoinethereumnews.com/finance/wti-edges-higher-above-57-50-amid-geopolitical-risks/