WTI Oil Holds Above $70.50 Amid Russia-Ukraine Peace Deal Prospects

West Texas Intermediate (WTI) crude oil remains steady above $70.50 per barrel, as market participants closely monitor developments surrounding a potential Russia-Ukraine peace deal. Supply concerns have eased, leading to a possible decline in oil prices.

Crude Oil Market Reacts to Diplomatic Developments

The Trump administration is set to engage in diplomatic talks with Russian officials in Saudi Arabia on Tuesday. This high-level meeting could influence global energy dynamics, particularly if it results in the removal of sanctions on Moscow. Such a move could significantly increase global oil supply and impact WTI crude oil prices.

Oil Demand and Market Stability

Despite geopolitical uncertainty, global oil demand has surged to 103.4 million barrels per day (bpd), marking a 1.4 million bpd increase from the previous year, according to JPMorgan analysts cited by Reuters. Demand for mobility and heating fuels has rebounded, narrowing the gap between actual and projected consumption.

Additionally, delays in U.S. reciprocal tariffs have helped stabilize crude oil prices. Investors are optimistic about potential trade agreements, further supporting market confidence.

Iran Sanctions and U.S. Oil Policy

U.S. Treasury Secretary Scott Bessent reiterated that the U.S. aims to reduce Iran’s oil exports to less than 10% of current levels as part of its “maximum pressure” strategy. The administration seeks to cut exports to around 100,000 barrels per day, a level observed during Trump’s first term.

Key Factors Driving WTI Oil Prices

WTI crude oil prices are influenced by supply-demand dynamics, geopolitical tensions, OPEC+ decisions, and U.S. dollar fluctuations. Weekly inventory data from the American Petroleum Institute (API) and the Energy Information Administration (EIA) also provide crucial market insights. A decline in crude inventories typically signals increased demand, driving prices higher, while rising inventories indicate surplus supply, pushing prices lower.

As the market awaits further developments, WTI oil remains a key indicator of global economic and geopolitical trends.