Oil Prices Slip 2.5% to Around $120

Oil prices fell on Wednesday but remained at their highest levels since 2008 as the global crude oil market faces an incredibly tight supply.

US benchmark West Texas Intermediate crude futures fell 2.5% on Wednesday to around $120 a barrel, while Brent crude, the global benchmark, fell 2.5% to below $125. West Texas Intermediate (WTI) crude had topped $130 in volatile trading earlier this week.

Russia's operation in Ukraine disrupted commodity markets, sending oil prices soaring amid tough sanctions against Russia, which is one of the world's most important crude oil producers.

Investors were cognizant of hopes that a diplomatic solution to the Ukraine crisis could be found. The foreign ministers of Ukraine and Russia are scheduled to meet in Turkey on Thursday for the latest round of talks.

Any easing of tensions could help oil prices ease to their highest levels in more than a decade, when US crude breached $140 a barrel in 2008.