WTI trades above $62.50 due to potential for additional sanctions on Russian Oil

• WTI prices advance amid rising prospects of further sanctions on Russian crude.
• Russia carried out its largest airstrike of the war on Ukraine, igniting the main government building in central Kyiv.
• Eight OPEC+ members will increase production by 137,000 barrels per day starting in October.

West Texas Intermediate (WTI) Oil price gains ground after three days of losses, trading around $62.70 during the early European hours on Monday. Crude Oil prices climb over 1.5% as prospects of additional sanctions on Russian crude grow following an overnight strike on Ukraine, reducing the likelihood of Russian Oil flooding the market.

Russia launched its largest air attack of the war on Ukraine, setting the main government building on fire in central Kyiv and killing at least four people, Ukrainian officials said on Sunday. US President Donald Trump said that European leaders would visit the United States (US) on Monday or Tuesday to discuss how to resolve the Russia-Ukraine war. Trump added that he was "not happy" about the status of the Russia-Ukraine war, after reporters asked about the attack, per Reuters.

Additionally, Oil prices gain ground after OPEC+, the Organization of the Petroleum Exporting Countries and its allies, decided to raise output further but at a modest pace amid weak demand prospects. Eight members of the group will raise production from October by 137,000 barrels per day (bpd), lower than the monthly increases of about 555,000 bpd for September and August and 411,000 bpd in July and June.

The prices of black gold also draw support from rising odds of the US Federal Reserve (Fed) rate cut, following weaker-than-expected jobs data for August. The CME FedWatch tool indicates a pricing in 92% of a 25-basis-point (bps) rate cut by the Fed at the September policy meeting, up from 86% a week ago, with bets rising on a potential 50 bps reduction this month. Lower borrowing costs could improve the economic activities in the United States, the world's largest Oil consumer, and support the demand for Oil.