WTI trades with modest losses around $62.70-$62.65 area, downside seems limited

• WTI attracts some intraday sellers on Monday, though it lacks bearish conviction.
• Trade-related uncertainties and OPEC+ plans to increase outlook exert pressure.
• Geopolitical risk premium remains in play and should limit losses for Oil prices.

West Texas Intermediate (WTI) US Crude Oil prices struggle to capitalize on modest gains registered over the past two days and attract some sellers near the $63.55 area during the Asian session on Monday. The commodity currently trades around the $62.65 region, down 0.50% for the day, though it lacks bearish conviction and remains confined in a familiar range.

US Treasury Secretary Scott Bessent said on Sunday that he did not know if US President Donald Trump had talked to Chinese President Xi Jinping. This keeps a lid on the recent optimism over the de-escalation of trade tensions between the world's two largest economies and adds to worries about a global recession, which could dent fuel demand. Adding to this, OPEC+ plans to increase production and further weigh on Crude Oil prices.

However, the geopolitical risk premium remains in play on the back of the protracted Russia-Ukraine war. In fact, North Korea confirmed on Monday that it had sent troops to fight for Russia in the war with Ukraine. Moreover, US Secretary of State Marco Rubio said the US might abandon its attempts to broker a deal if Russia and Ukraine do not make headway. This is holding back traders from placing bearish bets around Crude Oil prices.

Looking at the broader picture, the black liquid, for now, seems to have stalled its recent goodish recovery move from a multi-year low touched earlier this month and has been oscillating in a range over the past week or so. This marks a consolidation phase, which, along with the aforementioned mixed fundamental backdrop, warrants some caution before positioning for a firm near-term direction in the absence of any relevant macro data.