WTI rises to near $62.50 on US Oil stock drop, Ukraine-Russia talks in focus

• WTI price climbed as last week's US Oil inventory drop signaled stronger demand ahead.
• Oil prices could face pressure from increased supply if Ukraine and Russia reach a peace agreement.
• The dovish Fed tone continues to provide support for crude Oil prices.

West Texas Intermediate (WTI) Oil price recovers its recent losses from the previous session, trading around $62.30 per barrel during the early European hours on Wednesday. Crude Oil prices appreciate due to the decline in the United States (US) Oil stock for the week ending August 15, pointing to stronger demand ahead.

US American Petroleum Institute (API) Weekly Crude Oil Stock showed a 2.4 million-barrel inventory decline, exceeding expectations for a 1.2 million-barrel drop, reported by API's Weekly Statistical Bulletin (WSB).

However, the upside of the Crude Oil prices could be restrained due to Ukraine-Russia peace hopes. Any positive development toward a possible resolution of the Ukraine-Russia war could lead to an end to sanctions on Russian energy exports and boost Oil supply.

White House press secretary Karoline Leavitt stated on Tuesday that plans for a bilateral meeting between Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskyy are now underway, according to CNN. However, Russia has not confirmed it will take part in talks with Zelenskyy.

Furthermore, US President Donald Trump announced that the US would not place American troops on the ground to help enforce a potential peace deal in Ukraine. The terms of security guarantees are still being negotiated between the US, European partners, and Ukraine.

The prices of black gold also receive support from the dovish sentiment surrounding the Federal Reserve's (Fed) policy decision for the September meeting. 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.

Traders await the US Federal Reserve's Minutes for the July meeting due later in the North American session. Market attention would shift toward the Jackson Hole Economic Policy Symposium due on Thursday, with Fed Chair Jerome Powell's speech for guidance on a September policy decision.