West Texas Intermediate Crude stood near its lowest level in more than three weeks early Tuesday, following yesterday's selloff triggered by controversial vote that annexes Crimea to Russia.
The oil markets saw a sharp slump on Monday, with prices falling to a three-week low after the US and European Union have imposed sanction on Russian and Ukranian officials in response to Russian action in Ukraine, which culminated in Crimea's vote to join Russia. However, oil futures took a quick breather as fears eased over a possible disruprion of supply from Russia, the world's second largest oil exporter.
As of 04:07 a.m. ET:
- WTI Crude For April delivery rose 0.09% to $98.17 a barrel
- Brent Crude rose 0.37% to $106.63 a barrel
Prices were little changed on from yesterday's close, while t he US benchamrk kickstarted today's trade on a flatline, and European benchmark slighly higher, buoyed by fading risks over supply disruption and mostly upbeat US economic data, which kept losses for oil in check.
But the bigger part of the relief came from the tentative easing of tension over Western sanctions on Russia, which were limited to specific individuals and officlas.
yesterday's economic news was mixed from the world's largest economy but was led a big weather-related surge in industrial output which bounced back sharply after being pulleddown by a snowbound Janaury. Other data, however, were less upbeat with Empire State showing only marginal growth.
The mixed sentiment will probably dominate the oil marekts for the rest of the day, as traders will watching weekly data on US oil inventories and the outcome of the Federal Reserve's meeting later this week.
Further escalation in the Ukranian crisis will probably sent the markets on flames again if Russia tries to hold tigher grip on the pro-russian peninsula, prompting more severe economic sanction.
