Crude prices were lifted on the first day of the trading week, boosted by the escalated tension between Ukraine and Russia over the weekend increasing concerns that the energy supplies in Europe may be disrupted.
The North American West Texas Intermediate crude for May delivery rose by 0.51% higher, trading at $104.27 per barrel on the New York Mercantile Exchange at the time of writing. While the European benchmark Brent crude for May settlement added 0.54% to $107.92 a barrel on the ICE Futures Europe exchange at the same time.
Crude – Ukraine Crises
Over the weekend, rebels took over the police and government buildings in several cities across the eastern region of Ukraine after a Ukrainian secret service agent died in a shooting near the city of Slovyansk.
Russia has called an emergency meeting of the United Nations Security Council to discuss the recent turmoil, while officials from US and Ukraine blamed Russia for the violence which could lead to additional sanctions against the country.
Meanwhile, oil traders are worried that Russia could stop exporting oil and gas to Europe, which would weigh on the European Union (EU) economy. Russia supplies approximately 35% of oil and 32% of gas into the EU.
A drop of exports the European Union could affect Russia’s economy and income, in which 60% of its total income comes from oil and gas export.
Libya
In Libya, the country’s oil shipments may increase, as the country’s state-run National Oil Corp. succeeded in loading a tanker of crude from the Hariga terminal, one of the four ports which were seized by rebels last year.
Crude production in Iran climbed to its highest in almost two years, as it surpassed the one-million -a-day level, according to the International Energy Agency. Iran shipped 1.65 million barrel per day of oil in February.
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