WTI falls to near $62.00 on rising hopes for Ukraine-Russia peace

• WTI weakens as supply concerns ease, supported by positive signals of a potential Ukraine-Russia resolution.
• Trump and Zelenskyy expressed hope that Monday's meeting would pave the way for trilateral talks with Putin.
• Oil prices may appreciate as recent US data keeps intact the case for a Fed rate cut in September.

West Texas Intermediate (WTI) Oil price declines more than 0.5%, trading around $62.10 per barrel during the European hours on Tuesday. Crude Oil prices lose ground amid easing supply concerns, driven by positive signals toward a possible resolution of the Ukraine-Russia war, which could lead to an end to sanctions on Russian energy exports.

US President Donald Trump and Ukrainian President Volodymyr Zelenskyy both hoped that Monday's gathering would eventually lead to three-way talks with Russian President Vladimir Putin. Trump posted on social media, saying that he had spoken with the Russian leader and begun arranging a meeting between Putin and Zelenskyy, to be followed by a trilateral summit with all three presidents.

Reuters cited Suvro Sarkar, lead energy analyst at DBS Bank, saying that "Trump's language on secondary sanctions on importers of Russian oil has also eased off, which would have otherwise posed a risk of disruptions to global oil supplies. Hence, we believe geopolitical risks have eased a tad for the oil market this week."

Oil prices may regain its ground as recent United States (US) economic data support the case for a Federal Reserve (Fed) rate cut in September. It is worth noting that lower borrowing costs could stimulate economic activity in the United States, the world's largest oil consumer, which in turn may lend support to crude prices.

CME's FedWatch tool suggests that markets are pricing in 84% odds of a 25 basis point Fed rate cut in September. Meanwhile, attention now shifts to the Federal Reserve's annual Jackson Hole symposium later this week, where global policymakers will discuss labor market dynamics and the outlook for monetary policy. Fed Chair Jerome Powell is scheduled to deliver remarks on the economy and the central bank's policy stance.