Brent crude oil rose above $110 a barrel on Monday, close to a seven-week high, as tensions mounted in eastern Ukraine and Libya delayed the reopening of a damaged eastern port. The United States and Europe are preparing new sanctions against Russia over its actions in Ukraine. Pro-Russian rebels paraded European monitors they are holding on Sunday, freeing one but saying they had no plans to release another seven. June Brent crude dipped under $110 a barrel, down 40 cents, after settling down 75 cents on Friday. U.S. crude for June delivery peeled off early gains to trade under $101 a barrel, barely holding above its lowest since April 7. Western sanctions are likely to steer clear of energy as Europe depends heavily on Russia for oil and gas. But Moscow has indicated a willingness to use gas supplies to pressure Ukraine, raising fears that oil flows could also be affected. In Libya, the government is assessing damage at the eastern oil port of Zueitina following an eight-month oil blockade. Zueitina is one of two ports due to reopen after the government struck a deal with rebels three weeks ago. U.S. crude narrowed the gap with Brent to around $8.50 a barrel after it stretched as wide as $9.28 on Friday. Analysts blamed record crude inventories in the United States for depressing U.S. crude prices despite a rise in refinery utilization rates.

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