Oil dropped from a seven-year high to around $94 a barrel on Tuesday, pressured by a report that some troops in Russia’s military districts adjacent to Ukraine are returning to bases, a move that could de-escalate tension between Moscow and the West.
Brent crude fell $2.65, to $93.83 while U.S. West Texas Intermediate (WTI) crude dropped $2.82, or 3%, to $92.64.
Both oil benchmarks hit their highest since September 2014 on Monday, with Brent touching $96.78 and WTI reaching $95.82.
The price of Brent rose 50% in 2021 as a global recovery in demand from the COVID-19 pandemic strained supply.
Investors are also watching talks between the United States and Iran on reviving Tehran’s nuclear deal with world powers, which could potentially allow for higher Iranian oil exports.
Russian Foreign Minister Sergei Lavrov spoke to his Iranian counterpart Hossein Amirabdollahian on Monday and they noted a “tangible move forward” in reviving the Iran nuclear deal, Russia’s foreign ministry said.