Oil prices are down to start the week on media reports that Russia is showing signs it might be willing to have substantive negotiations over Ukraine.
The price of Brent crude oil, the international standard, fell $1.82 U.S., or 1.6%, to $110.85 U.S. a barrel. West Texas Intermediate (WTI) crude oil fell $2.41 U.S., or 2.2%, to $106.92 U.S. per barrel.
Brent crude oil last week was down 4.8% after hitting $139.13 U.S. on March 7. U.S. crude recorded a weekly drop of 5.7% after touching a high of $130.50 U.S. on March 7.
Investors have been concerned about a tighter oil market following Russia’s military action in Ukraine. Prices fell last week as traders assessed potential improvements to the supply outlook that has been disrupted by the Ukraine crisis.
Russia is showing signs it might be willing to have substantive negotiations over Ukraine, U.S. Deputy Secretary of State Wendy Sherman said over the weekend.
Russia said it was counting on China to help it withstand the economic blow from Western sanctions over the war in Ukraine, but the U.S. has warned Beijing not to provide that lifeline.
U.S. National Security Adviser Jake Sullivan, who is due to meet with China’s top diplomat Yang Jiechi in Rome today (March 14), warned Beijing it would face consequences if it helps Moscow evade sweeping sanctions over the war in Ukraine.