WTI trades cautiously near two-month low of $68.60 on peace deal, tariff fears

• The Oil price sees more downside as investors remain hopeful for Russia-Ukraine peace.
• A global economic slowdown by Trump's tariffs in an unfavorable scenario on the Oil price.
• Investors await the US EIA crude stock data, which will be published at 15:30 GMT.

West Texas Intermediate (WTI), futures on NYMEX, trades with caution around two-month low of $68.60 in European trading hours on Wednesday. The Oil price struggles to gain ground as the Oil demand outlook has weakened due to growing optimism over Russia-Ukraine peace and fears of United States (US) President Donald Trump's tariff agenda.

The White House has said that President is aiming to end war in Ukraine as early as possible. President Trump is also expected to meet Russian leader Vladimir Putin sooner to discuss more about negotiation terms.

Meanwhile, the US and Ukraine have agreed to terms of a draft minerals deal that doesn't have U.S. security guarantees or continued flow of weapons, Reuters reported on Tuesday. Market participants have considered the move as a positive step towards peace in Ukraine.

Positive developments in Russia-Ukraine peace would an unfavorable scenario for the Oil price, assuming that the US and Europe would lift sanctions on Russia if it calls off war in Ukraine that will lead to an increase in seaborne oil flows in the global market.

Fears of a global slowdown from Trump's tariff agenda has also kept the Oil price on the backboot. Till now, Trump has announced 10% tariffs on imports from China and 25% on aluminum and steel imports. He is planning to announce reciprocal tariffs and 25% levies on foreign cars, pharmaceuticals and semiconductors by April.

In today's session, investors will focus on the US Energy Information Administration (EIA) crude inventory data for the week ending February 21. The US EIA is expected to have seen an increase in oil stockpiles by 2.34 million barrels.