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West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $61.15 during the Asian trading hours on Tuesday. The WTI drifts lower as the Organization of the Petroleum Exporting Countries and its allies (OPEC+) is expected to increase oil output once again for December.

According to the latest Bloomberg report citing two delegates from the cartel, OPEC+ intends to vote on raising production by an additional 137,000 barrels per day (bpd). While the base scenario assumes restoring output to around 1.66 million bps, there is still no consensus on the pace of further expansion. The group's plans to increase oil output could drag the WTI price lower in the near term. 

On the other hand, hopes of a trade deal framework between the US and China might help limit the WTI’s losses. US Treasury Secretary Scott Bessent said on Sunday that the agreement would remove the threat of 100% tariffs on Chinese imports set to take effect on November 1 and would include “a final deal” on the sale of TikTok in the US. 

The White House confirmed last week that Trump will meet his Chinese counterpart Xi Jinping, in South Korea on Thursday on the sidelines of an Asian summit. Positive developments to defuse trade tensions between the world's two largest economies could boost oil-demand sentiment and support the oil prices. 

Additionally, the WTI price receives support from renewed US sanctions on Russia and geopolitical risks. Last Wednesday, the Trump administration announced sanctions on Rosneft and Lukoil, Russia's biggest oil producers, due to Russia's lack of serious commitment to a peace process to end the war in Ukraine.

“The United States hit Russia's major oil companies with sanctions on Wednesday, which could hurt Russia's oil exports if enforced and be a positive for crude prices,” said Dennis Kissler, senior vice president of trading at BOK Financial.

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