Oil prices dipped to pre-war level during Asian trading hours after U.S. official said Russia was showing signs it might be willing to have substantive negotiations over Ukraine.
Brent crude futures inched down by 2% to $110.41 per barrel while WTI inched down by 2.37% to $106.73 per barrel.
Both contracts have surged to decades high since Russia’s February 24 invasion of Ukraine.
U.S Deputy Secretary of State Wendy Sherman on Sunday said, Russia was showing sings it might be willing to have substantive negotiations over Ukraine, even as Moscow current in internet on “destroying” it neighbor.
Earlier, Russian invasion on Ukraine roiled energy markets globally, spiking central bank’s concern of uncontrollable inflation.
Following series of sanctions, U.S. earlier annoyed ban one Russian oil important while Brent said it would phase them out by year end. The downward pressure on prices followed after comments from a United Arab Emirates ambassador that the country supports production increases and would encourage OPEC to consider higher output.
“The U.S. ban on Russian crude oil imports saw prices initially rally sharply. However, without the Europeans joining the move, the risk of further tightness in oil markets was discounted,” said ANZ Research analysts in a note on Monday.
