Oil Drops 2% Amid Russia-Ukraine Peace Talks, China Lockdowns

Oil prices ended 2% lower on Tuesday as talks progressed between Russia and Ukraine to end their weeks-long conflict, though Moscow negotiators said a promise to scale down some military operations did not represent a ceasefire. Further weighing on oil futures, new lockdowns in China to curb the spread of the coronavirus prompted concerns that fuel demand could take a hit. Brent crude settled down $225, or 2%, at $11023 a barrel, while U.S. West Texas Intermediate (WTI) crude was down $172, or 16%, at $10424 Both benchmarks fell 7% on Monday and dropped as much as 7% again early on Tuesday before bouncing off session lows. Ukrainian and Russian negotiators met in Turkey for the first facetoface discussions in nearly three weeks. The top Russian negotiator said the talks were "constructive." Russia promised to reduce its military operations around Kyiv and northern Ukraine; Ukraine proposed adoption of neutral status but with international guarantees that it would be protected from attack. Oil came off session lows when Moscow's lead negotiator cautioned that Russia's promise to decrease military operations did not represent a ceasefire and a formal agreement with Kyiv had a long way to go. "Maybe there's reasons to be a bit more optimistic than we were this time yesterday, but I don't think this whole situation with Ukraine is going to go away in the next 15 minutes," cautioned Robert Yawger, executive director of energy futures at Mizuho. Sanctions imposed on Russia over its invasion of Ukraine had disrupted oil supplies and driven oil prices to nearly $140 a barrel, its highest in about 14 years. New lockdowns in Shanghai to curb rising coronavirus cases also pressured prices on Tuesday as the market worried about a falloff in Chinese demand. Shanghai accounts for about 4% of China's oil consumption, ANZ Research analysts said.

Oil prices ended 2% lower on Tuesday as talks progressed between Russia and Ukraine to end their weeks-long conflict, though Moscow negotiators said a promise to scale down some military operations did not represent a ceasefire. Further weighing on oil futures, new lockdowns in China to curb the spread of the coronavirus prompted concerns that fuel demand could take a hit. Brent crude settled down $225, or 2%, at $11023 a barrel, while U.S. West Texas Intermediate (WTI) crude was down $172, or 16%, at $10424 Both benchmarks fell 7% on Monday and dropped as much as 7% again early on Tuesday before bouncing off session lows. Ukrainian and Russian negotiators met in Turkey for the first facetoface discussions in nearly three weeks. The top Russian negotiator said the talks were "constructive." Russia promised to reduce its military operations around Kyiv and northern Ukraine; Ukraine proposed adoption of neutral status but with international guarantees that it would be protected from attack. Oil came off session lows when Moscow's lead negotiator cautioned that Russia's promise to decrease military operations did not represent a ceasefire and a formal agreement with Kyiv had a long way to go. "Maybe there's reasons to be a bit more optimistic than we were this time yesterday, but I don't think this whole situation with Ukraine is going to go away in the next 15 minutes," cautioned Robert Yawger, executive director of energy futures at Mizuho. Sanctions imposed on Russia over its invasion of Ukraine had disrupted oil supplies and driven oil prices to nearly $140 a barrel, its highest in about 14 years. New lockdowns in Shanghai to curb rising coronavirus cases also pressured prices on Tuesday as the market worried about a falloff in Chinese demand. Shanghai accounts for about 4% of China's oil consumption, ANZ Research analysts said.Oil prices ended 2% lower on Tuesday as talks progressed between Russia and Ukraine to end their weeks-long conflict, though Moscow negotiators said a promise to scale down some military operations did not represent a ceasefire. Further weighing on oil futures, new lockdowns in China to curb the spread of the coronavirus prompted concerns that fuel demand could take a hit. Brent crude settled down $225, or 2%, at $11023 a barrel, while U.S. West Texas Intermediate (WTI) crude was down $172, or 16%, at $10424 Both benchmarks fell 7% on Monday and dropped as much as 7% again early on Tuesday before bouncing off session lows. Ukrainian and Russian negotiators met in Turkey for the first facetoface discussions in nearly three weeks. The top Russian negotiator said the talks were "constructive." Russia promised to reduce its military operations around Kyiv and northern Ukraine; Ukraine proposed adoption of neutral status but with international guarantees that it would be protected from attack. Oil came off session lows when Moscow's lead negotiator cautioned that Russia's promise to decrease military operations did not represent a ceasefire and a formal agreement with Kyiv had a long way to go. "Maybe there's reasons to be a bit more optimistic than we were this time yesterday, but I don't think this whole situation with Ukraine is going to go away in the next 15 minutes," cautioned Robert Yawger, executive director of energy futures at Mizuho. Sanctions imposed on Russia over its invasion of Ukraine had disrupted oil supplies and driven oil prices to nearly $140 a barrel, its highest in about 14 years. New lockdowns in Shanghai to curb rising coronavirus cases also pressured prices on Tuesday as the market worried about a falloff in Chinese demand. Shanghai accounts for about 4% of China's oil consumption, ANZ Research analysts said.Oil prices ended 2% lower on Tuesday as talks progressed between Russia and Ukraine to end their weeks-long conflict, though Moscow negotiators said a promise to scale down some military operations did not represent a ceasefire. Further weighing on oil futures, new lockdowns in China to curb the spread of the coronavirus prompted concerns that fuel demand could take a hit. Brent crude settled down $225, or 2%, at $11023 a barrel, while U.S. West Texas Intermediate (WTI) crude was down $172, or 16%, at $10424 Both benchmarks fell 7% on Monday and dropped as much as 7% again early on Tuesday before bouncing off session lows. Ukrainian and Russian negotiators met in Turkey for the first facetoface discussions in nearly three weeks. The top Russian negotiator said the talks were "constructive." Russia promised to reduce its military operations around Kyiv and northern Ukraine; Ukraine proposed adoption of neutral status but with international guarantees that it would be protected from attack. Oil came off session lows when Moscow's lead negotiator cautioned that Russia's promise to decrease military operations did not represent a ceasefire and a formal agreement with Kyiv had a long way to go. "Maybe there's reasons to be a bit more optimistic than we were this time yesterday, but I don't think this whole situation with Ukraine is going to go away in the next 15 minutes," cautioned Robert Yawger, executive director of energy futures at Mizuho. Sanctions imposed on Russia over its invasion of Ukraine had disrupted oil supplies and driven oil prices to nearly $140 a barrel, its highest in about 14 years. New lockdowns in Shanghai to curb rising coronavirus cases also pressured prices on Tuesday as the market worried about a falloff in Chinese demand. Shanghai accounts for about 4% of China's oil consumption, ANZ Research analysts said.Oil prices ended 2% lower on Tuesday as talks progressed between Russia and Ukraine to end their weeks-long conflict, though Moscow negotiators said a promise to scale down some military operations did not represent a ceasefire. Further weighing on oil futures, new lockdowns in China to curb the spread of the coronavirus prompted concerns that fuel demand could take a hit. Brent crude settled down $225, or 2%, at $11023 a barrel, while U.S. West Texas Intermediate (WTI) crude was down $172, or 16%, at $10424 Both benchmarks fell 7% on Monday and dropped as much as 7% again early on Tuesday before bouncing off session lows. Ukrainian and Russian negotiators met in Turkey for the first facetoface discussions in nearly three weeks. The top Russian negotiator said the talks were "constructive." Russia promised to reduce its military operations around Kyiv and northern Ukraine; Ukraine proposed adoption of neutral status but with international guarantees that it would be protected from attack. Oil came off session lows when Moscow's lead negotiator cautioned that Russia's promise to decrease military operations did not represent a ceasefire and a formal agreement with Kyiv had a long way to go. "Maybe there's reasons to be a bit more optimistic than we were this time yesterday, but I don't think this whole situation with Ukraine is going to go away in the next 15 minutes," cautioned Robert Yawger, executive director of energy futures at Mizuho. Sanctions imposed on Russia over its invasion of Ukraine had disrupted oil supplies and driven oil prices to nearly $140 a barrel, its highest in about 14 years. New lockdowns in Shanghai to curb rising coronavirus cases also pressured prices on Tuesday as the market worried about a falloff in Chinese demand. Shanghai accounts for about 4% of China's oil consumption, ANZ Research analysts said.Oil prices ended 2% lower on Tuesday as talks progressed between Russia and Ukraine to end their weeks-long conflict, though Moscow negotiators said a promise to scale down some military operations did not represent a ceasefire. Further weighing on oil futures, new lockdowns in China to curb the spread of the coronavirus prompted concerns that fuel demand could take a hit. Brent crude settled down $225, or 2%, at $11023 a barrel, while U.S. West Texas Intermediate (WTI) crude was down $172, or 16%, at $10424 Both benchmarks fell 7% on Monday and dropped as much as 7% again early on Tuesday before bouncing off session lows. Ukrainian and Russian negotiators met in Turkey for the first facetoface discussions in nearly three weeks. The top Russian negotiator said the talks were "constructive." Russia promised to reduce its military operations around Kyiv and northern Ukraine; Ukraine proposed adoption of neutral status but with international guarantees that it would be protected from attack. Oil came off session lows when Moscow's lead negotiator cautioned that Russia's promise to decrease military operations did not represent a ceasefire and a formal agreement with Kyiv had a long way to go. "Maybe there's reasons to be a bit more optimistic than we were this time yesterday, but I don't think this whole situation with Ukraine is going to go away in the next 15 minutes," cautioned Robert Yawger, executive director of energy futures at Mizuho. Sanctions imposed on Russia over its invasion of Ukraine had disrupted oil supplies and driven oil prices to nearly $140 a barrel, its highest in about 14 years. New lockdowns in Shanghai to curb rising coronavirus cases also pressured prices on Tuesday as the market worried about a falloff in Chinese demand. Shanghai accounts for about 4% of China's oil consumption, ANZ Research analysts said.Oil prices ended 2% lower on Tuesday as talks progressed between Russia and Ukraine to end their weeks-long conflict, though Moscow negotiators said a promise to scale down some military operations did not represent a ceasefire. Further weighing on oil futures, new lockdowns in China to curb the spread of the coronavirus prompted concerns that fuel demand could take a hit. Brent crude settled down $225, o