WTI drops below $90 mark on potential truce between Russia and Ukraine

• WTI slips near $90 on Biden-Putin meet as investors hope for a truce between Russia and Ukraine.
• The DXY scales below 96.00 as the risk-on impulse kicks in.
• The API weekly crude stockpiles remain the next trigger to keep on the radar.

West Texas Intermediate (WTI), futures on NYMEX, retreats from Monday’s high of $91.60 in the Asian session after the US White House confirms that US President Joe Biden has accepted to meet Russian leader Vladimir Putin on security and strategic stability in Europe. The confirmation of the meeting has come along with a condition stating that Russia doesn’t invade Ukraine.

Should this occur, the crude oil supply will not worsen further as Russia will not find any sanctions from the Western leaders.

Earlier, the market participants claimed that restrictions on the exports from Russia may reduce the supply of oil and increase the price eventually. The economy is already encountering a tight oil supply environment and any further slippage in total oil stocks could halt the operating activities.

The announcement has eased the volatility in the market principally and risk-on impulse is getting more traction. The US dollar index (DXY) tumbles below 96.00, 0.3% lower than Friday’s closing price.

Apart from that, Saudi Energy Minister Prince Abdulaziz bin Salman said at an energy conference in Riyadh Sunday, OPEC and its allies (OPEC+) should come across to keep oil market stability in the long term. The comments have been supportive of the oil supply but the Russia-Ukraine tussle still remains the major driver to guide the crude oil prices.

As the US markets are closed on Monday, on account of President’s Day, the release of American Petroleum Institute (API) weekly oil stockpiles shifts on Wednesday, which may help investors for further guidance over the anticipation of the oil prices in coming trading sessions.