WTI crude oil futures rose to around $63.1 per barrel on Tuesday, extending gains for a second consecutive session as mounting geopolitical tensions stoked concerns over tighter global supply conditions.
Oil rises for the second day
The rally was driven in part by developments in Eastern Europe, where Russia and Ukraine held their second round of direct peace talks on Monday following a sharp escalation in hostilities the previous day. Despite the high-profile nature of the discussions, no significant progress was made toward resolving the protracted, three-year-long conflict, leaving markets cautious about any immediate easing of supply disruptions linked to the region.
Meanwhile, geopolitical strains deepened in the Middle East after an Iranian diplomat announced on Monday that Iran is poised to reject a recent U.S. proposal aimed at ending the decades-old nuclear dispute. Tehran criticized the offer as inadequate, arguing that it neither addresses Iran’s core interests nor relaxes Washington’s stringent stance on uranium enrichment. This development has renewed fears of prolonged instability in one of the world’s key oil-producing regions, further tightening supply outlooks.
Adding to the supply-side worries, a wildfire in Alberta, Canada, forced the temporary shutdown of some oil and gas production facilities, disrupting output in a region that is a significant contributor to North American energy supplies. The combination of these supply risks has helped underpin oil prices amid an already fragile global market.
OPEC+ news
On the policy front, OPEC+ announced that it would maintain its planned output increases in July at the same modest levels implemented over the previous two months. This decision alleviated market concerns about a potentially larger supply boost that could weigh on prices, signaling the producer group’s cautious approach amid uncertain demand prospects.
Taken together, the confluence of geopolitical instability, regional supply disruptions, and OPEC+’s measured output strategy has supported oil prices, with traders closely watching for any new developments that could further tighten or ease the global oil balance in the near term.
