• WTI prices are supported by persistent geopolitical tensions between the US and Iran.
• Crude upside may be capped as diplomatic progress emerges, despite US warnings to avoid Iranian waters near Hormuz.
• Venezuelan Oil exports surge to 800,000 bpd in January from 498,000 bpd in December.

West Texas Intermediate (WTI) Oil price continues to trade higher for a third consecutive session, trading near $64.20 per barrel during early European trading on Tuesday. Crude Oil prices are supported by ongoing geopolitical tensions between the US and Iran, while traders await the American Petroleum Institute (API) weekly inventory report due later in the day.

That said, upside momentum of the crude prices could be capped by signs of diplomatic progress. On Monday, the US warned American-flagged vessels to avoid Iranian waters while passing through the Strait of Hormuz, even as both countries signaled that talks would continue after what were described as positive discussions in Oman last Friday. Still, uncertainty persists, with Iran maintaining its stance on uranium enrichment—a key point of contention for Washington.

WTI price may also come under pressure from rising global supply. Venezuelan crude exports increased sharply, reaching 800,000 barrels per day (bpd) in January, up from 498,000 bpd in December, according to Reuters, potentially adding to supply-side headwinds.

Meanwhile, markets are closely watching developments around India’s imports of Russian oil. Recent US–India trade discussions have reportedly been linked to a freeze on Russian crude purchases. As one of the largest buyers of Russian oil, any disruption to India’s imports could provide notable support to global oil prices.