WTI remains on the defensive below $82.50 amid Israel-Hamas peace talks, Fed rate cut expectations

• WTI prices trade in negative territory for the third consecutive day near 82.20 on Tuesday. 
• The growing speculation of delay rate cuts and the Fed's hawkish remark weigh on the black gold. 
• A successful ceasefire negotiation might mitigate the geopolitical risk premium built into WTI prices.

Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around $82.20 on Tuesday. The black gold edges lower as ceasefire talks between Israel and Hamas in Cairo alleviated the fear of a broader conflict in the Middle East.

The most recent ceasefire proposal appears to include major compromises from Israel, which is under pressure over the fate of the captives and faces worldwide criticism over the humanitarian crisis its war has caused in Gaza, per the Guardian. A successful ceasefire negotiation might mitigate the geopolitical risk premium built into oil prices. 

Additionally, the recent US inflation data and hawkish stance from the US Federal Reserve (Fed) dimmed the prospect of imminent interest rate cuts, which caps the upside of black gold. The US Fed is expected to hold rates steady in its current 5.25%-5.50% range on Wednesday. Chair Jerome Powell's press conference will also be a closely watched event, as it might provide insights into the Fed's stance on interest rate adjustments. The 'higher-for-longer' interest rates narrative might lift the US Dollar (USD) and exert some selling pressure on the USD-denominated oil 

Later on Tuesday, the Chinese Caixin Manufacturing PMI, NBS PMI data, the Eurozone Inflation data, and GDP growth numbers will be due. Apart from this, the API Weekly Crude Oil Stock for the week ending April 26 will be released.