By Stephanie Kelly

NEW YORK (Reuters – The oil prices plunged on Sunday as a result of a U.S. official stating that Russia might show signs of willingness to hold substantive talks over Ukraine.

The futures prices fell 1.6% or $1.82 to $110.85/barrel by 6:47 pm. ET (2247 GMT). WTI crude futures declined 2.2% or $2.41 to $106.92/barrel

The Russian invasion of Ukraine late February (which Moscow refers to as a “special operations”) has caused turmoil in the global energy market. Brent fell 4.8% last week after reaching $139.13 March 7, after touching an all-time high of $130.50 March 7. These price peaks were last seen in 2008 when both contracts reached their lowest levels. [O/R]

Russia’s intervention has raised concerns among investors about the tightening of oil markets. As traders evaluated the potential for improvements in the supply outlook, which has been affected by the Ukraine crisis, oil prices dropped last week.

Russia appears to be open to substantive talks over Ukraine, despite Moscow’s intent on “destroying” its neighbor. This was stated by U.S. deputy secretary of state Wendy Sherman on Sunday.

The RIA news agency quoted Dmitry Peskov as saying that Russia-Ukraine discussions are not currently taking place but will resume on Monday.

Peskov’s comments were made after Oleksiy Arestovych, the Ukrainian presidential advisor, stated that Russia and Ukraine had been actively engaged in talks Sunday.

Russia stated on Sunday that China would help it weather the economic consequences of Western sanctions on Ukraine. But the United States warned Beijing to not provide this lifeline.

Jake Sullivan, the U.S. National Security Adviser, is set to meet Yang Jiechi (China’s top diplomat) in Rome Monday.