LONDON—Oil prices clawed back heavy losses to rise more than 2 percent on Wednesday on supply tightness and the growing prospect of new Western sanctions against Russia even as Moscow and Kyiv held peace talks. Brent crude futures were up $2.44, or 2.2 percent, at $112.67 by 1054 GMT, reversing a 2 percent loss in the previous session. U.S. West Texas Intermediate (WTI) crude futures rose $2.51, or 2.4 percent, to $106.75 a barrel, erasing a 1.6 percent drop on Tuesday. Crude’s price recovery “suggests the oil market, at least, has a strong degree of scepticism about any ‘progress’ (in the peace talks),” Commonwealth Bank analyst Tobin Gorey said in a note. The market saw a sharp sell-off in the previous session after Russia promised to scale down military operations around Kyiv, but reports of attacks continued. “We would see an additional 1 million barrels per day of Russian production …