Crude oil prices fell more than 3% on Tuesday. The price drop came after oil
prices hit a seven-year high after Russia reported its military was
returning to base after exercises near Ukraine.
Russia's move is seen as reducing tensions between Moscow and the West.
It is not clear how many military units were withdrawn after the addition of
some 130,000 Russian troops.
Previous Interfax reports of troop movements had pushed oil prices to extend
losses.
"The situation is very fluid, but today was definitely a calmer day," said
Robert Yawger, Executive Director of Energy Futures at Mizuho.
Brent crude fell $3.20, or 3.3%, to $93.28 per barrel.
US West Texas Intermediate (WTI) crude fell $3.39, or 3.6 percent, to end at
$92.07 a barrel.
The two oil benchmarks hit their highest prices since September 2014 on
Monday.
Brent oil prices touched US$ 96.78 and WTI reached US$ 95.82.
Brent oil prices briefly jumped 50% in 2021 and WTI oil prices jumped around
60%, as the recovery in global demand from the COVID-19 pandemic hit supply.
Underscoring the tight supply-demand balance, U.S. crude stockpiles fell by
1.1 million barrels for the week ended Feb. 11, according to Reuters citing
market sources citing American Petroleum Institute figures on Tuesday.
Gasoline inventories fell by 923,000 barrels while distillate stocks fell by
546,000 barrels.