Crude oil prices made the U-turn and dropped sharply, more than 6 percent, to about $ 106 a barrel after Ukrainian consultant David Arahamia said, “the results of today’s meeting are sufficient for a meeting at the leadership level.”
A Russian negotiator welcomed “meaningful” progress with Ukrainian representatives at peace talks in the Turkish city of Istanbul more than a month after Russia attacked its neighbor.
Benchmark Brent crude futures fell more than 6 percent to about $ 106 a barrel, and U.S. West Texas Intermediate (WTI) crude fell more than 6 percent to $ 99.6.
The two contracts fell about 7 percent on Monday, as Shanghai’s two-stage closure offset concerns about a nine-day tight supply expected to hit fuel demand in China, the world’s largest oil importer.
While benchmark Brent crude starting Tuesday extended losses from the previous session, it bounced back and rose nearly 0.4 percent to trade around $ 113 after falling as low as $ 109.97 a barrel at the start of the session.
Ukrainian and Russian negotiators meet in Turkey for the first face -to -face talks in nearly three weeks. Russia’s leading negotiator said the talks were “constructive”.
“The results of today’s meeting are sufficient for a meeting at the leadership level,” said Ukrainian consultant David Arakhamia, raising the possibility of a meeting between Volodymyr Zelensky and Vladimir Putin that Russia had shot down recently on Monday as “counterproductive”.
Sanctions imposed on Russia after it invaded Ukraine have cut off oil supplies and sent prices to a 14 -year high earlier this month.