Oil drops from 7-year high on report some Russian troops returning to base

Crude oil storage tanks are seen from above on the Cushing oil hub, in Cushing, Oklahoma, March 24, 2016. Image taken March 24, 2016. REUTERS/Nick Oxford

LONDON, Feb 15 (Reuters) – Oil dropped from a seven-year excessive to round $94 a barrel on Tuesday, pressured by a report that some troops in Russia’s army districts adjoining to Ukraine are returning to bases, a transfer that might de-escalate stress between Moscow and the West.

Russia’s Interfax information company cited the defence ministry as saying that whereas large-scale drills throughout the nation continued, some items of the Southern and Western army districts have accomplished their workout routines and began returning to base. learn extra

Brent crude fell $2.65, or 2.8%, to $93.83 by 1045 GMT. U.S. West Texas Intermediate (WTI) crude dropped $2.82, or 3%, to $92.64.

“There aren’t any prizes for guessing the driving pressure behind this bout of volatility,” stated Stephen Brennock of oil dealer PVM. “The Russia-Ukraine disaster has put the vitality market on excessive alert for attainable disruptions of Russian vitality provides.”

Each oil benchmarks hit their highest since September 2014 on Monday, with Brent touching $96.78 and WTI reaching $95.82. The worth of Brent rose 50% in 2021 as a world restoration in demand from the COVID-19 pandemic strained provide.

Britain’s International Secretary Liz Truss stated on Tuesday a Russian invasion of Ukraine was extremely possible, though Prime Minister Boris Johnson and U.S. President Joe Biden agreed in a name on Monday there was a vital window for diplomacy. learn extra

Buyers are additionally watching talks between the USA and Iran on reviving Tehran’s nuclear take care of world powers, which might probably permit for larger Iranian oil exports.

Russian International Minister Sergei Lavrov spoke to his Iranian counterpart Hossein Amirabdollahian on Monday and so they famous a “tangible transfer ahead” in reviving the Iran nuclear deal, Russia’s international ministry stated. learn extra

In different developments, the newest weekly reviews on U.S. inventories are anticipated to indicate a drop in crude shares, underlining a decent provide and demand stability.

The primary of this week’s two reviews, from the American Petroleum Institute, is due at 2130 GMT.

Extra reporting by Yuka Obayashi; enhancing by Jason Neely

: The Thomson Reuters Trust Principles.