WTI remains above $69.00 due to growing supply concerns over the Russia-Ukraine conflict

• WTI price receives support from growing supply concerns due to rising geopolitical tensions.
• Kremlin warned to retaliate if Ukraine use Army Tactical Missile Systems (ATACMS).
• Norway’s Equinor announced a production halt at its Johan Sverdrup Oilfield due to an onshore power outage.

West Texas Intermediate (WTI) Oil price extends its gains for the second successive session, trading around $69.20 per barrel during Asian hours on Tuesday. Crude Oil prices have gained support amid growing supply concerns over a potential escalation in the Russia-Ukraine conflict. On Sunday, Russia launched its largest airstrike on Ukraine in nearly three months, inflicting significant damage on the country's power infrastructure. 

On Sunday, US President Joe Biden authorized Ukraine to use Army Tactical Missile Systems (ATACMS), advanced long-range American weapons, to conduct strikes within Russia. CNN cited two US officials.

In response, the Kremlin warned on Monday that it would retaliate against what it described as a reckless move by the Biden administration. Russia had previously cautioned that such actions could heighten the risk of confrontation with NATO.

Crude Oil prices found support after Norway’s Equinor announced a production halt at its Johan Sverdrup Oilfield, the largest in Western Europe, due to an onshore power outage. According to the company on Monday, efforts to restore production are underway, but a timeline for resumption remains uncertain, as reported by Reuters.

Last week, crude Oil prices faced downward pressure after Federal Reserve Chair Jerome Powell tempered expectations for near-term rate cuts, emphasizing the economy’s resilience, a robust labor market, and persistent inflationary challenges. Adding to the bearish sentiment, concerns about weakening demand in China, the world’s largest Oil importer, have further weighed on the Oil prices.