WTI holds losses below $63.00 ahead of Trump-Putin peace talks

• WTI price struggles amid expectations of a potential end to the Ukraine-Russia war ahead of the Trump-Putin meeting.
• Oil prices rose after Trump warned that failure to reach an agreement with Putin could lead to "very severe consequences."
• Robust Japanese GDP growth and solid Chinese industrial production point to stronger Oil demand.

West Texas Intermediate (WTI) Oil price loses ground after registering more than 1.5% gains in the previous session, trading around $62.90 per barrel during the Asian hours on Friday. Crude Oil prices struggle amid expectations of a potential end to the Ukraine-Russia war ahead of the meeting between US President Donald Trump and Russian President Vladimir Putin in Alaska later in the day.

Both leaders will meet for the first time in six years, as Trump seeks to fulfill a key campaign promise to end Russia's war in Ukraine by leveraging his rapport with Putin. However, he estimated only a "25% chance" of success. Ukraine's President Volodymyr Zelensky, excluded from the talks, has warned that any decisions made without his involvement will be meaningless, per BBC.

Oil prices gained ground after President Trump warned that failing to reach an agreement with Putin could result in "very severe consequences." He had earlier set a deadline for Russia to end the war, threatening tougher sanctions if unmet, including secondary tariffs on major oil purchasers such as China and India.

Additionally, prices of crude Oil appreciated on improved market sentiment amid rising odds of interest rate cuts by the US Federal Reserve (Fed). CME's FedWatch tool indicates that Fed funds futures traders are now pricing in nearly a 92% chance of a 25 basis point (bps) interest rate cut at the September meeting. Lower rates reduce consumer borrowing costs and can boost economic growth in the United States, the world's largest Oil consumer, which could support demand for crude.

Meanwhile, recent data released Friday showed Japan's Gross Domestic Product (GDP) grew 0.3% QoQ in the second quarter, while China's annual industrial production rose 5.7% in July, signaling stronger Oil demand from Asia's key consumers.