WTI hovers around $68.50 near two-month lows amid prospects of increased supply

WTI price stays subdued amid rising supply expectations and a weakening demand outlook.

Oil prices remain under pressure amid the possibility of a Russia-Ukraine peace deal and the potential easing of Russian sanctions.

President Trump announced plans to revoke Chevron Corp.’s Oil license in Venezuela.

West Texas Intermediate (WTI) oil price remains near a two-month low at $68.29 recorded on February 26, hovering around $68.70 per barrel during Asian trading hours on Thursday. Crude oil prices continue to face pressure from expectations of increased supply and a bearish demand outlook.

The possibility of a Russia-Ukraine peace deal has also weighed on prices, as the potential easing of Russian sanctions could lead to a higher global Oil supply. Additionally, concerns over economic growth have added to the headwinds, with fears that tariffs imposed by US President Donald Trump on China and other trading partners could weaken demand.

In a related development, the United States (US) and Ukraine have reportedly agreed on the terms of a draft minerals deal crucial to Kyiv’s efforts to secure Washington’s support. According to sources cited by Reuters on Tuesday, President Donald Trump is seeking to swiftly end the conflict with Russia.

On Wednesday, President Trump announced plans to revoke Chevron Corp.’s Oil license in Venezuela. Venezuelan Vice President Delcy Rodriguez criticized the decision, calling it "damaging and inexplicable," as reported by Reuters.

In Iraq, the Kurdistan regional government has reached an agreement with the federal Oil ministry to resume Kurdish crude exports based on available volumes. However, the restart is pending Turkey’s approval. The pipeline has been shut since March 2023, following an International Chamber of Commerce (ICC) ruling ordering Turkey to pay Baghdad $1.5 billion in damages for unauthorized exports between 2014 and 2018.