WTI Oil Price Stays at $62.00 Amid Bearish Sentiment Over Potential Russia-Ukraine Ceasefire

WTI Oil Price Weakens to $62.00 Amid Concerns Over Potential Russia-Ukraine Ceasefire

The price of West Texas Intermediate (WTI) oil has fallen to $62.00 per barrel during the early European session on Tuesday, after experiencing two consecutive days of gains. This decline comes as concerns about potential oversupply increase, following news that Russia and Ukraine will begin ceasefire negotiations, possibly without US involvement.

US President Donald Trump announced that Russia and Ukraine will engage in immediate ceasefire talks, which could lead to an easing of sanctions on Russia. This could result in a rise in Russian oil exports, exacerbating the global oil supply glut. The prospect of increased supply weighs on oil prices, causing bearish sentiment in the market.

Adding to the pressure on oil prices, Moody’s downgraded the US sovereign credit rating, casting a negative outlook on the world’s largest oil consumer’s economy. This downgrade, coupled with weaker-than-expected industrial production and retail sales data from China—the world’s largest oil importer—has reinforced the bearish outlook for oil prices.

Additionally, the People's Bank of China (PBoC) recently lowered the one- and five-year Loan Prime Rates by 10 basis points to 3.0% and 3.5%, respectively, further signaling economic slowdowns in both major oil-consuming nations. The combination of these factors has led to a drop in WTI oil prices, leaving the market in a cautious and bearish state.