By Gina Lee
Investing.com – Oil was down on Monday morning in Asia, extending a decline from the previous week. The black liquid fell by about $4 a barrel during early trade, after the U.S. said Russia could be willing to conduct substantial negotiations to end the conflict in Ukraine.
Brent oil futures fell 1.93% to $110.50 by 12:13 AM ET (4:13 AM GMT) and WTI futures slid 2.36% to $106.73.
Both Brent and WTI futures have climbed since Russia's Feb. 24 invasion of Ukraine and are up roughly 40% for 2022 to date.
U.S. Deputy Secretary of State Wendy Sherman said on Sunday that Russia could be willing to have substantive negotiations over Ukraine, even as fighting continues.
Both Brent and WTI futures hit their highest levels since 2008 last week on supply concerns after the West, including the U.S. and some European countries, considered banning Russian oil imports.
The U.S. later announced a ban on Russian supplies, while the U.K. is looking to phase supplies out by the end of 2022. The United Arab Emirates' ambassador to the U.S., Yousuf Al Otaiba, said his country supports production increases and would encourage the Organization of the Petroleum Exporting Countries (OPEC) to consider higher output. The comments put further downward pressure on prices.
Some OPEC and allies (OPEC+) members are struggling to meet existing output quotas, thanks to a lack of investment and spare capacity to further boost production.
Russia is the top exporter of crude and oil products combined globally and accounts for around 7 million barrels per day.
"The U.S. ban on Russian crude oil imports saw prices initially rally sharply. However, without the Europeans joining the move, the risk of further tightness in oil markets was discounted," ANZ Research analysts said in a note.
Talks between Russia and Ukraine are expected to resume on Monday, press secretary for Russian President Vladimir Putin Dmitry Peskov reportedly told media on Sunday. Peskov’s comments came after Ukrainian presidential adviser Oleksiy Arestovych said Ukraine and Russia were actively conducting talks on Sunday.