Oil prices retreat as Ukraine worries ease

Oil prices edged down Tuesday as Ukraine's Foreign Ministry said peace talks with Russia made progress.

Ukraine's Foreign Ministry said the negotiation achieved an agreement to implement parts of Ukraine's peace plan after two days of talks with Russia.

Russia is an important producer of crude and natural gas. Most of the Russian crude and gas exports to Europe pass through Ukraine.

The Organization of Petroleum Exporting Countries is expected to maintain its production target of 30 million barrels a day at the Vienna meeting Wednesday. Saudi Oil Minister said the market was "stable and balanced" before the meeting.

Oil price jumped Monday on strong data from China and US.

US wholesale inventories, a key component of gross domestic product changes, rose 1.1 percent in April from the prior month, which was higher than market consensus, the Commerce Department said Tuesday. The gain pointed to a pick up in the US economic growth in the second quarter after a contraction in the first quarter largely resulting from an abnormal cold weather.

Light, sweet crude for July delivery moved down 6 cents to settle at 104.41 dollars a barrel on the New York Mercantile Exchange, while Brent crude for July delivery lost 47 cents to close at 109.52 dollars a barrel.