Oil prices shed as much as $4 a barrel on Monday, extending last week’s decline as diplomatic efforts to end the war in Ukraine were stepped up and markets braced for higher U.S. rates.
Brent crude futures were last down by $3.05 or 2.7per cent at $109.62 a barrel at 0351 GMT on Monday. U.S. West Texas Intermediate (WTI) crude futures eased $3.10 or 2.8per cent to $106.23 a barrel.
Both contracts have surged since Russia’s Feb. 24 invasion of Ukraine and are up roughly 40per cent for the year to date. Russia and Ukraine gave their most upbeat assessments after weekend negotiations, suggesting there could be positive results within days.
On Sunday, U.S. Deputy Secretary of State Wendy Sherman said Russia was showing signs it might be willing to have substantive negotiations over Ukraine, even as Moscow was intent on “destroying” its neighbour while Ukrainian negotiator Mykhailo Podolyak said that Russia was “beginning to talk constructively. “Russia’s invasion, which Moscow calls a “special operation,” has roiled energy markets globally.
“Oil prices might continue moderating this week as investors have been digesting the impact of sanctions on Russia, along with parties showing signs of negotiation towards ceasing fire,” said Tina Teng, an analyst at CMC Markets.
