Oil falls $7 on Russia-Ukraine talk hopes, Covid lockdowns in China

Oil prices fell around $7 a barrel on Monday as investors pinned hopes on diplomatic efforts between Ukraine and Russia to end their conflict, while a surge in COVID-19 cases in China spooked the markets.

Brent was down by $6.78, or 6%, at $105.89 a barrel at 1358 GMT and U.S. crude fell $7.01, or 6.4%, to $102.32.

Both benchmarks have surged since Russia’s Feb. 24 invasion of Ukraine and are up roughly 40% in the year to date.

Ukrainian and Russian negotiators are set to talk again on Monday via video link. Negotiators had given their most upbeat assessments after weekend negotiations, suggesting there could be positive results within days.