Brent oil drops below $105 over ‘constructive’ Russia-Ukraine peace talks

NEW YORK, UNITED STATES (FILE FOOTAGE): Russia pledges to significantly decrease its military activities on Kyiv and northern Ukrainian city of Chernihiv, easing concerns over supply disruptionsPrice of Brent oil declined below $105 a barrel on Tuesday, posting almost a 6% loss, after fresh round of peace talks in Istanbul ended with constructive results, easing supply fears.International benchmark Brent crude was trading at $103.23 per barrel at 0651 GMT for a 5.71% decrease after closing the previous session at $109.49 a barrel.American benchmark West Texas Intermediate (WTI) was at $99.58 per barrel at the same time for a 6,02% loss after the previous session closed at $105.96 a barrel.Downward movements in prices came after the reports about “constructive” talks between Russia and Ukraine in Istanbul.Russia pledged to significantly decrease its military activities on Kyiv and northern Ukrainian city of Chernihiv, said Russian Deputy Defense Minister Alexander Fomin, speaking after the meeting.After reporting a new daily record for asymptomatic infections, Shanghai, China's financial capital, was shut down in two stages over the next eight days.Up to 200,000 barrels per day (bpd) of demand is expected to be impacted for the duration of the restrictions.“Global oil demand has been showing signs of weakness in the month of March and this weakness is expected to persist through April and May due to the impact of high oil prices globally, the negative effects of sanctions and war in Russia and Ukraine, and the consequences of increasing lockdowns in China,” Claudio Galimberti, Rystad Energy’s senior vice president of analysis, said in an e-mailed note.Experts say between 1.2 and 1.5 million bpd of Russian crude exports have been lost since the start of the invasion of Ukraine on Feb. 24, while around 3 million bpd is expected to be rerouted from Europe to Asia. (Footage by Lokman Vural Elibol/Anadolu Agency via Getty Images)