Oil drops from 7-year high on report some Russian troops returning to base | Reuters

Oil drops from 7-year high on report some Russian troops returning to base | Reuters

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. read more

Brent crude fell $2.65, or 2.8%, to $93.83 by 1045 GMT. U.S. West Texas Intermediate (WTI) crude dropped $2.82, or 3%, to $92.64.

"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."