Crude oil prices dropped on Tuesday amid easing worries about global crude supply after reports said Russia and Ukraine made some encouraging progress in their face-to-face peace talks in Turkey.
According to the top Russian negotiator, the talks were “constructive.”
According to a Reuters report, Russia’s deputy defense minister has said that Russia has decided to drastically cut its military activity focused on Kyiv and Chernihiv.
Ukraine proposed adopting neutral status in exchange for security guarantees at the talks, meaning it would not join military alliances or host military bases, Ukrainian negotiators said.
West Texas Intermediate crude futures for May ended down by $1.72 or about 1.6% at $104.24 a barrel.
Brent crude futures settled at $110.23 a barrel on Tuesday, giving up $2.25 or about 2%.
Investors looked ahead to weekly inventory reports from the American Petroleum Institute (API) and U.S. Energy Information Administration (EIA). The API’s report is due later today, while the EIA is scheduled to release its inventory data Wednesday morning.