Oil falls over 3pc on partial Russian withdrawal from Ukraine border

oil drilling 1 - Oil falls over 3pc on partial Russian withdrawal from Ukraine border

Crude oil prices slipped over three percent on Tuesday after Russia raised cautious hopes of peace by announcing withdrawal of some of the troops deployed along the Ukrainian border.

As of 1245 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, shed $3.05 (-3.16 percent) to reach $93.43 a barrel. Brent crude futures hit the highest level since October 2014 at $96.16 a day earlier.

On the other hand, the US West Texas Intermediate (WTI) price reached $92.08 a barrel, down by $3.38 (-3.54 percent). WTI crude rose to $94.94, its highest level in over seven years, a day earlier.

The price for Opec Basket was recorded at $92.85 a barrel with a decrease of 0.02 percent, Arab Light was available at $94.71 a barrel with a decrease of 0.22 percent and the price of Russian Sokol slipped to $97.31 a barrel with 0.06 percent decrease.

Russia announced that some of the troops deployed in border zones are returning to their bases after finishing military exercises. The partial withdrawal came as German Chancellor Olaf Scholz began talks in the Kremlin on Tuesday in what diplomats are describing as a window of opportunity to prevent war.

It was not clear how many troops were pulling back from the estimated 130,000 stationed near Ukraine’s border, and the foreign minister in Kiev issued a warning: “Don’t believe what you hear, believe what you see.” But markets rallied on hopes of a peaceful solution as Ukraine said a flurry of diplomacy in recent weeks had helped to prevent a Russian escalation.

A day earlier, the Kremlin said that the proposal that Ukraine could abandon its goal to join the US-led NATO military bloc would be a positive step towards reducing tensions between Moscow and Kiev. Russian President Vladimir Putin’s spokesperson Dmitry Peskov said this while responding to a suggestion made by Ukraine’s ambassador to the UK, Vadim Prystaiko, who on Sunday suggested that Kiev was considering ending its goal to join NATO as a way to “avoid” war.

“A recorded refusal by Ukraine, a confirmed rejection of the idea of Ukraine joining NATO, is a step that would contribute significantly to the formulation of a more meaningful response to Russian concerns,” Peskov said.

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