WTI maintains position above $72.00 due to rising Oil supply concerns

• WTI price holds gains as Russian Oil production in January fell further below the country's OPEC+ quota.
• Oil prices experience resistance amid rising trade tensions and economic uncertainty following US tariffs on steel and aluminum imports.
• Geopolitical tensions increase as Trump urges Israel to end ceasefire with Hamas if hostages are not returned by the weekend.

West Texas Intermediate (WTI) crude Oil price continues its upward trend for the third straight day, trading around $72.20 during Asian hours on Tuesday. The rise in crude Oil prices is supported by concerns over increasing supply risks.

However, the upside of the WTI price remains limited due to growing trade tensions and economic uncertainty following US President Donald Trump's decision to impose a 25% tariff increase on steel and aluminum imports. This move raises concerns about global economic growth and energy demand in the United States (US), the world's largest Oil consumer.

According to Bloomberg, undisclosed sources indicate that Russian Oil production in January fell further below the country's OPEC+ quota, with output dropping to 8.962 million barrels per day--16,000 barrels below its target under the OPEC+ agreement.

Meanwhile, new US sanctions target individuals and tankers transporting Iranian crude to China, intensifying pressure on Tehran. Iranian President Masoud Pezeshkian has called for OPEC members to unite against potential US sanctions, following Trump's announcement of plans to reduce Iran's oil exports to zero.

Geopolitical tensions in the Middle East could further support crude Oil prices. Trump has urged Israel to end its ceasefire with Hamas if hostages are not returned by the weekend, increasing the risk of renewed conflict as both sides accuse each other of violating the agreement.

Additionally, a Reuters poll of economists suggests the Federal Reserve may postpone interest rate cuts until next quarter due to inflation concerns. Many analysts who had anticipated a rate cut in March have now adjusted their forecasts, with most predicting at least one cut by June. Higher interest rates could slow economic growth in the US, the world's largest Oil consumer, potentially dampening oil demand.