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Ukraine's president said the positions of Ukraine and Russia
were sounding more realistic, but time was needed. Russia's
foreign minister said some deals with Ukraine were close to
being agreed.
"Fears of a supply disruption have been tempered by tentative
signs of progress in ceasefire talks between Russia and
Ukraine," said Stephen Brennock of oil broker PVM.
"That said, an end to hostilities still seems like a long way
off."
Brent crude fell 54 cents or 0.5% to $99.37 a barrel by 1037
GMT, having traded as high as $103.70 earlier. U.S. West Texas
Intermediate (WTI) crude slipped 96 cents or 1% to $95.48.
The price falls also followed the release of the International
Energy Agency's monthly report that cut its oil demand forecast
for 2022. [IEA/M]. A day earlier, the Organization of the
Petroleum Exporting Countries held its forecast steady. [OPEC/M]
Crude settled below $100 on Tuesday, the first time since late
February. Trading has been volatile since Russia's invasion of
Ukraine on Feb. 24, with prices hitting a 14-year high on March
7, but Brent has since fallen nearly $40 a barrel.
The U.S. Federal Reserve is expected to raise rates for the
first time in three years later on Wednesday and give guidance
on future tightening. Investors are expecting the central bank
to raise rates by at least 25 basis points.
Oil had also come under pressure this week from concerns of
slowing demand in China as it takes measures against the Omicron
coronavirus variant. Those fears appeared to ease on Wednesday,
as figures showed fewer new cases.
Besides the Fed decision, in focus on Wednesday will be the
latest round of U.S. inventory data due at 1530 GMT from the
Energy Information Administration. Analysts expect a 1.4 million
barrel drop in crude stocks. [EIA/S]
(Additional reporting by Emily Chow; Editing by Louise Heavens
and Barbara Lewis)
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