WTI rises above $63.20 amid geopolitical risks

• WTI price jumps to near $63.20 in Monday's early Asian session.
• Geopolitical risks in Europe and the Middle East boost the WTI price. 
• Persistent oversupply and soft fuel demand in the US might cap the upside for the WTI. 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $63.20 during the early Asian trading hours on Friday. The WTI rises amid escalating geopolitical tension in Europe and the Middle East. Oil traders brace for the American Petroleum Institute (API) weekly crude oil stock report later on Tuesday. 

Reuters reported that Polish and allied aircraft were sent on Saturday to protect Polish airspace after Russia attacked western Ukraine near the Polish border, according to the NATO-member country's military. "Reports over the weekend that Russia was threatening over the Polish border have provided traders with a timely reminder of the ongoing risks to European energy security from the northeast," said Michael McCarthy, CEO of investment platform Moomoo Australia and New Zealand.

The US Federal Reserve (Fed) last week approved a widely anticipated rate cut and signaled that two more reductions are on the way before the end of the year. Lower interest rates generally support oil demand, and the Fed's guidance suggests it now views risks from rising unemployment as outweighing those from persistent inflation.

On the other hand, the prospect of more oil supply and concerns over a slowdown in the US economy could weigh on the WTI price. US crude oil stockpiles fell sharply last week as net imports dropped to a record low while exports jumped to a near two-year high, according to the Energy Information Administration (EIA). However, a rise in distillate stockpiles, which increased by 4 million barrels versus predictions of a 1 million barrel increase, raised worries about demand in the world's top oil consumer.