Oil prices shed as much as $4 a barrel on Monday, extending last week's decline as diplomatic efforts to end the war in Ukraine were stepped up and markets braced for higher U.S.rates.
 

Brent crude futures were last down by $3.05 or 2.7% at $109.62 a barrel at 0351 GMT on Monday. U.S. West Texas Intermediate (WTI) crude futures eased $3.10 or 2.8% to $106.23 a barrel.

Both contracts have surged since Russia's Feb. 24 invasion of Ukraine and are up roughly 40% for the year to date. Russia and Ukraine gave their most upbeat assessments after weekend negotiations, suggesting there could be positive results within days.