WTI Crude falls by 3%, trades at $106/Bbl

West Texas Intermediate (WTI) crude futures fell about 3% to $106 per barrel on Monday, extending last week’s decline on hopes for a diplomatic solution to the Russia-Ukraine war even as fighting raged on.

The US Deputy Secretary of State, Wendy Sherman, said on Sunday that Russia is showing signs it might be willing to have substantive negotiations over Ukraine, ahead of the resumption of talks between the warring nations on Monday.

The US crude benchmark touched a 14-year high of $130.5 last week before reversing and closing the week sharply lower as traders assessed potential improvements to the supply outlook that has been disrupted by Russia’s invasion of Ukraine and related sanctions.

Investors now await oil market reports from the IEA and OPEC which have both pointed to potential oversupply this year.

Traders are also tracking developments on the Iran nuclear talks which faced the prospect of collapse after a last-minute Russian demand forced world powers to pause negotiations.

The West Texas Intermediate (WTI) benchmark for US crude is the world’s most actively traded commodity.

Source: Trading Economics