WTI recovers above $71.00 on supply disruptions in the Caspian region

• WTI price rebounds to near $71.20 in Tuesday's early Asian session. 
• An attack on an oil pipeline pumping station in the Caspian Sea slowed flows from Kazakhstan, supporting the WTI price. 
• The potential ceasefire talks in the Russia-Ukraine war and trade war tension could drag the WTI lower. 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $71.20 during the early Asian session on Tuesday. The WTI price recovers amid supply disruptions in the Caspian region.

The Caspian Pipeline Consortium said on Monday that drones struck the Kropotkinskaya pipeline pumping station in Russia's southern Krasnodar region, reducing oil flows from Kazakhstan to world markets by Western producers. This, in turn, provides some support to the WTI price. 

"Although those drone attacks so far had limited disruption impacts on Russian crude exports, the rising frequency of those attacks is a concern that at some point it triggers some supply risks," said UBS analyst Giovanni Staunovo.

Investors will closely watch the developments surrounding a possible Moscow-Kiev ceasefire agreement that could ease sanctions and increase global supplies. The potential ceasefire talks in the Russia-Ukraine war might cap the upside for the black gold in the near term. 

Additionally, the prospect of a global trade war might weigh on the WTI. Last week, US President Donald Trump ordered his administration to consider imposing reciprocal tariffs on numerous trading partners.