By Arathy Somasekhar HOUSTON (Reuters) -Oil prices dropped $2 on Tuesday, as talks progressed between Russia and Ukraine to end their weeks-long conflict, though Moscow negotiators clarified that it did not represent a ceasefire. Further weighing on oil futures, new lockdowns in China to curb the spread of the coronavirus prompted concerns about that fuel demand could take a hit. Brent crude fell $2.38, or 2.1%, to $110.10 a barrel by 1:41 p.m. ET (1742 GMT). U.S. West Texas Intermediate (WTI) crude was down $1.89, or 1.9%, at $104.02. Each benchmark fell 7% on Monday and was down as much as 7…