Oil prices sank on Monday as traders weighed demand outlook while awaiting a fresh round of Russia-Ukraine peace talks.

The West Texas Intermediate for May delivery lost 7.94 U.S. dollars, or 7 percent, to settle at 105.96 dollars a barrel on the New York Mercantile Exchange. Brent crude for May delivery decreased 8.17 dollars, or 6.8 percent, to close at 112.48 dollars a barrel on the London ICE Futures Exchange.

The pullback came as investors continued to assess the impact of COVID-19 on fuel demand.

Elsewhere, "hopes that the peace negotiations between Ukraine and Russia could lead to rapprochement" also contributed to the price slide, Carsten Fritsch, energy analyst at Commerzbank Research, said Monday in a note.

Ukraine and Russia will start the next round of peace talks on Tuesday in the Turkish city of Istanbul, the Ukrainian government-run Ukrinform news agency reported on Monday.

For the week ending Friday, the U.S. crude benchmark and Brent jumped 10.5 percent and 11.8 percent, respectively, based on the front-month contracts.