Crude oil prices fell on Monday amid easing worries about supply on reports the U.S. is likely to lift sanctions on Venezuelan oil.
Oil prices drifted lower earlier in the session amid hopes a fresh round of talks between Russia and Ukraine will result in a solution to the conflict between the two countries. However, a pause in talks resulted in a recovery in prices before reports about a possible U.S. deal with Venezuela helped ease concerns about supply and pushed down oil prices again.
Meanwhile, reports that China is seeing its worst Covid outbreak in more than two years have raised concerns over demand. The city of Shenzhen has gone into lockdown, whilst other cities are also seeing tougher restrictions.
Investor focus also shifted to major central bank meetings this week amid inflation risks from commodity supply disruptions.
West Texas Intermediate Crude oil futures for April ended lower by $6.32 or about 5.8% at $103.01 a barrel. Oil futures dropped to a low of $99.76 a barrel in the session.
Brent crude futures ended the day with a loss of about 5.1% at $106.90 a barrel.