Oil drops from 7-year high as Russia says some troops return to base | Reuters

Oil drops from 7-year high as Russia says some troops return to base | Reuters

Oil dropped more than 3% from a seven-year high on Tuesday after Russia said some of its military units were returning to their bases after exercises near Ukraine, a move that appeared to de-escalate tension between Moscow and the West.

It was not clear how many units were being withdrawn, and by what distance, after a build-up of an estimated 130,000 Russian troops. An earlier Interfax report on the troop movements had prompted oil to extend losses. read more

Brent crude was down $2.87, or 3%, at $93.61 by 1222 GMT. U.S. West Texas Intermediate (WTI) crude dropped $3.49, or 3.7%, to $91.97.

"There are no prizes for guessing the driving force behind this bout of volatility," said Stephen Brennock of oil broker PVM. "The Russia-Ukraine crisis has put the energy market on high alert for possible disruptions of Russian energy supplies."