WTI tumbles below $63.00 as traders await Trump-Putin talk outcomes

• WTI price drifts lower to near $62.85 in Friday's early European session.
• Trump warned Russia of "consequences" if it did not reach a Ukraine peace deal.
• Optimism surrounding the expectation of a US interest rate cut next month could boost oil demand, supporting the WTI price. 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $62.85 during the early European trading hours on Friday. The WTI loses ground as traders brace for a face-to-face summit between US President Donald Trump and Russian President Vladimir Putin in Alaska on Friday, which could result in significant changes to supply from Russia.

Trump and Putin are set to meet in Alaska to discuss the Ukraine issue. On Wednesday, Trump warned that Russia will face "very severe consequences" if Putin doesn't agree to end the war in Ukraine during their meeting on Friday. Any signs of ongoing conflict between Russia and Ukraine could support the WTI price, while a positive outcome could drag the black gold lower.  

"A direct ceasefire is unlikely, but there may be outcomes for US-Russia cooperation and a framework for follow-up negotiations, which is bearish for oil prices," said Zhou Mi, an analyst at a research institute affiliated with Chaos Ternary Futures Co.

On the other hand, rising bets that the US Federal Reserve (Fed) will cut rates at the September meeting could undermine the US Dollar (USD) and boost the USD-denominated commodity prices. Oil traders will keep an eye on the US July Retail Sales report due later on Friday for fresh impetus. According to the CME FedWatch tool, Fed funds futures traders are now pricing in nearly a 94% possibility of a 25 basis point (bps) cut next month, up from an 85% chance last week.