WTI Rises Above $63 as Russia Defies US Ultimatum

WTI Rebounds as Geopolitical Risks Rise

The price of US benchmark crude oil, West Texas Intermediate (WTI), climbed to approximately $63.35 per barrel in early Asian trading on Tuesday. The rebound follows Russia’s rejection of a US ultimatum demanding an end to its military operations in Ukraine.

Last week, US President Donald Trump warned that failure to comply would result in steep tariffs on Russian oil exports and secondary sanctions targeting nations continuing to import Russian crude. The deadline passed last Friday without a response from Moscow, fueling speculation over imminent economic retaliation from Washington.

Trump-Putin Meeting Expected in Alaska

Despite heightened tensions, President Trump announced his intention to meet Russian President Vladimir Putin this Friday in Alaska, in an effort to address the Ukraine conflict through diplomatic means. The outcome of this high-stakes meeting could significantly affect oil markets, as tougher sanctions remain a strong possibility if no resolution is reached.

China’s Deflation Concerns May Cap Oil Gains

However, upside potential for oil prices may be capped by concerns over deflationary pressure in China, the world’s second-largest oil consumer. Weak economic signals from Beijing continue to weigh on demand expectations, adding a layer of complexity to global oil market dynamics.

Traders are also closely watching the American Petroleum Institute (API) Crude Oil Inventories report, due later today, which could offer further insight into supply-demand balances and influence short-term price movements.