Oil drops from seven-year high on report some Russian troops return to base

Oil dropped from a seven-year high to around $94 a barrel on Tuesday, pressured by a report that some troops in Russia’s military districts adjacent to Ukraine are returning to bases, a move that could de-escalate tension between Moscow and the West.

Russia’s Interfax news agency cited the defence ministry as saying that while large-scale drills across the country continued, some units of the Southern and Western military districts have completed their exercises and started returning to base.

Brent crude fell $2.35, or 2.4 per cent, to $94.13 by 1442 IST. US West Texas Intermediate (WTI) crude dropped $2.00, or 2.1 per cent, to $93.46.

“There are no prizes for guessing the driving force behind this bout of volatility,” said Stephen Brennock of oil broker PVM.