IV:WTI oil futures edge higher with Ukraine tensions in focus
Investing.com - U.S. oil futures were higher on Monday, amid prospects Russia will be subject to further sanctions as tensions over Ukraine intensify, underlining concerns over a disruption to supplies from the region.
On the New York Mercantile Exchange, West Texas Intermediate crude oil for delivery in June rose to a daily high of $100.42 a barrel, the most since April 30.
Nymex oil last traded at $100.35 a barrel during European morning hours, up 0.59%, or 58 cents a barrel. Prices picked up 0.34%, or 34 cents, on Friday to settle at $99.76.
Futures were likely to find support at $99.17 a barrel, the low from May 2 and resistance at $100.76 a barrel, the high from April 30.
Clashes between Ukraine's army and pro-Russian forces broke out in six cities in eastern Ukraine over the weekend, stoking fears that the crisis will develop and drag the U.S. deeper into the standoff.
U.S. Secretary of State John Kerry threatened Russia with further sanctions on Sunday, unless the country stopped backing separatists in eastern Ukraine.
The West is accusing Russia of leading a separatist revolt in eastern Ukraine after it annexed Crimea last month.
Russia produced 10.4 million barrels of oil per day in 2012 and exported 7.4 million, making it the world’s second largest oil exporter after Saudi Arabia.
U.S. oil prices also drew support from expectations demand in the U.S. will pick up after data on Friday showed that the U.S. economy added jobs at the fastest pace in more than two years in April.
The Labor Department reported Friday that the U.S. economy added 288,000 jobs in April, well above expectations for jobs growth of 210,000. The U.S. unemployment rate dropped to a five-and-a-half year low of 6.3%, compared to expectations for 6.6%.
Gains were limited after a report released earlier showed that China’s final HSBC Purchasing Managers Index ticked down to 48.1 in April from a final reading of 48.3 in March and below expectations for a reading of 48.4.
The report indicated that China’s manufacturing sector contracted for the fourth consecutive month in April, underlining concerns that an economic slowdown in the world’s second-largest economy is deepening
The Asian nation is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for June delivery added 0.2%, or 21 cents, to trade at $108.81 a barrel, while the spread between the Brent and U.S. crude contracts stood at $8.46 a barrel.
