WTI tumbles below $62.00 amid supply glut fears

• WTI price falls to near $61.85 in Tuesday's early European session. 
• Iraq and Kurdish regional governments reached an agreement with oil firms to resume crude exports via Turkey on Monday. 
• Traders will closely monitor the developments surrounding geopolitical risks. 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $61.85 during the early European trading hours on Tuesday. The WTI slumps amid heightened concerns over oversupply after Iraq and the Kurdish regional governments have reached a deal to restart an oil pipeline. Oil traders brace for the American Petroleum Institute (API) weekly crude oil stock report, which will be released later on Tuesday. 

WTI price extends the downside as a preliminary agreement reached between Iraq's federal and Kurdish regional governments to restart an oil pipeline added to oversupply concerns. "The prevailing theme is still concerns on oversupply, while demand outlook is still uncertain as we approach year-end period. The restart of KRG pipeline has also been putting pressure on prices," said LSEG senior analyst Anh Pham.

Reuters reported on Monday that Iraq, the Organization of the Petroleum Exporting Countries' (OPEC) second-largest producer, has increased oil exports under an OPEC+ agreement. It also estimates September's exports to range from 3.4 million to 3.45 million barrels per day (bpd).  

On the other hand, ongoing geopolitical tensions in the Middle East and Russia might help limit the WTI's losses. On Monday, NATO allies accused Russia of violating airspace in Estonia and Poland. Britain warned that this may lead to an armed conflict in the area. On the Middle East front, Reuters reported that two Gaza hospitals have been closed owing to Israel's expansion of its ground attack.