Brent Crude slips to $110 a barrel, supported by Ukraine Crisis

Reuters reported today that Brent Crude dropped to $109.93 today, but settled at $1.22 higher by the end of the day. According to Reuters, oil prices were bolstered by worries that ongoing struggles in the Ukraine would threaten oil supplies for Europe, while port closures in Libya gave further weight to worries over oil inventories.

U.S. oil prices fell $1.25 to $100.69 following reports that U.S. crude oil producers would quickly be able to bring supplies online.

As quoted in the market news:

Russia warned Kiev on Friday it would face justice for a “bloody crime” in eastern Ukraine, where Ukrainian forces killed up to five pro-Russian rebels, while Washington said Moscow was running out of time to defuse the crisis before facing further sanctions.Russian President Vladimir Putin has scoffed at the sanctions so far imposed, which have been limited to travel bans and overseas asset freezes on individuals. Investors worry tougher sanctions could affect oil and gas flows to Europe.

Carsten Fritsch, senior oil and commodities analyst at Commerzbank in Frankfurt told Reuters:

The escalation of the situation in eastern Ukraine is raising the risk that oil and gas supplies could be affected at some point.

Click here to read the full Reuters article.