The U.S. West Texas Intermediate (WTI) crude futures fell 76 cents, or 0.8%, to $91.15 a barrel, after hitting $96 on Tuesday..
Prices soared on Tuesday on fears that Western sanctions against Russia for sending troops to two breakaway regions in eastern Ukraine could hit energy supplies.
Sanctions imposed by the United States, the European Union, the United Kingdom, Australia, Canada and Japan targeted Russian banks and elites, while Germany halted a major gas pipeline project from Russia. But the United States has made it clear that the sanctions agreed upon and those that could be imposed will not target oil and gas flows.
However, analysts expect oil prices to continue to be supported by the Russia-Ukraine crisis for now, with some Western countries vowing to impose more sanctions if Russia launches an all-out invasion of its neighbor.
“The prospect of more conflict in Ukraine should safeguard the geopolitical risk premium,” said Stephen Brennock of PVM Oil brokerage.
“There is a risk that Russia will retaliate for sanctions by cutting deliveries on its own,” said Carsten Fritsch, an analyst at Commerzbank.
The Possible return of more Iranian crude to the market put further pressure on oil prices on Wednesdayas Tehran and world powers move ever closer to reviving a nuclear deal.
“The nuclear talks in Vienna are reaching a sensitive and important point,” Iranian Foreign Minister Hossein Amirabdollahian said on Wednesday.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
