WTI crude oil rebounded from a two-month low, settling above $63 per barrel amid light summer trading.

Investors are closely watching Friday's summit between Trump and Putin to determine whether it will lead to relaxed sanctions against this OPEC+ member nation or result in tighter restrictions. Following calls with European leaders, Trump warned of "very serious consequences" if Putin does not agree to a ceasefire.

The market is largely in a "wait-and-see mode," said Rebecca Babin, senior energy trader at CIBC Private Wealth Group. "The market consensus is that we won't see a clear ceasefire agreement, nor will we see aggressive sanctions from Trump."

On the supply side, the outlook is increasingly pessimistic. While oil price volatility has been limited recently due to reduced trading activity during the Northern Hemisphere summer, crude prices have fallen more than 10% year-to-date as OPEC and its partners reverse production cuts that began in 2023. Expectations of potentially record supply surplus next year are also weighing on the market.

WTI September futures rose 2.09%, settling at $63.96 per barrel.

Brent October futures settled 1.84% higher at $66.84 per barrel.