WTI Oil Holds Steady at $63.50 as Markets Await Putin-Trump Summit Outcome

WTI Oil Price Steady as Geopolitical Tensions Dominate Market Mood

West Texas Intermediate (WTI) crude oil is trading flat near $63.50 on Tuesday, holding gains after rebounding from a two-month low of $62.00 on Monday. Despite the bounce, upside momentum is capped, with traders reluctant to take fresh positions ahead of the highly anticipated Trump-Putin summit later this week.

Markets are on edge as geopolitical tensions remain elevated, especially surrounding Russia's war in Ukraine. The US-imposed deadline for Russia to halt hostilities expired today without enforcement, sparking renewed questions over the effectiveness of prior threats made by US President Donald Trump.

No Sanctions Yet as Russia Escalates, Ukraine Rejects Demands

Russia has intensified military operations, following the lapse of Washington’s warning two weeks ago. Trump had threatened new sanctions and 10% tariffs on countries continuing to import Russian oil if Moscow did not halt its aggression. However, with no follow-through on penalties, market participants remain wary of headline risks.

President Vladimir Putin is now demanding international recognition of Russia’s seized territories as a condition to end the war—an idea firmly rejected by Ukrainian President Volodymyr Zelenskyy. As the Friday summit approaches, optimism for a quick resolution is fading.

OPEC+ Supply Outlook Muted by Political Uncertainty

Meanwhile, OPEC+ proposals to modestly increase supply have failed to impact oil markets significantly, as the geopolitical premium continues to dominate. The combination of uncertain demand dynamics and global diplomatic deadlock has kept oil price action contained within a narrow range.

Traders will now focus on the Trump-Putin meeting, with any signal of de-escalation likely to pressure crude lower, while escalation or failed diplomacy could renew upside volatility in WTI.