West Texas Intermediate crude extended gains during early European trading on Tuesday.
The US oil benchmark was trading near fifty seven dollars eighty five cents a barrel.
Prices continued to firm amid heightened geopolitical uncertainty surrounding the Ukraine conflict.
Recent diplomatic efforts failed to deliver a clear breakthrough toward ending the war.
United States President Donald Trump said talks with Ukraine’s leadership showed progress.
Trump added that no agreement had been reached on territorial issues.
He indicated negotiations could still take several weeks to conclude.
Market participants viewed the lack of progress as supportive for crude prices.
Russia accused Ukraine of carrying out a drone strike on a presidential residence.
Moscow said the alleged incident could alter its position on peace negotiations.
Ukraine denied responsibility for the drone attack.
Ukraine’s foreign minister said Russia was seeking false justification for further strikes.
The renewed exchange of accusations dented hopes for a near-term ceasefire.
Analysts said prolonged conflict risks could tighten energy markets.
Supply concerns linked to geopolitical instability helped lift WTI prices.
However, upside momentum remained capped by global supply considerations.
OPEC and its allies agreed to a modest output increase for December.
The group approved a production hike of one hundred and thirty seven thousand barrels per day.
Traders said the increase could contribute to a supply surplus if demand weakens.
Broader concerns about a potential global oil glut persisted.
Investors remained cautious ahead of fresh inventory data from the United States.
The American Petroleum Institute was set to release its weekly stockpiles report later Tuesday.
Oil traders closely watch the report for signs of demand strength.
A larger than expected drawdown could indicate improving consumption trends.
Stronger demand signals would likely provide further support to WTI prices.
Conversely, an unexpected build could suggest excess supply conditions.
A larger inventory build may pressure prices lower in the short term.
Trading volumes remained relatively subdued amid broader market uncertainty.
Analysts said near-term price direction would depend on geopolitics and inventory data.
WTI remains sensitive to both diplomatic developments and supply signals.