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Crude gains as Ukraine tensions flare up anew on referendum vote

Published 05/12/2014, 01:23 PM
Updated 05/12/2014, 01:25 PM
Oil rises as Ukraine crisis escalates
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Investing.com - Crude futures rose on Monday after pro-Russian separatists in eastern Ukraine voted in favor of self rule in a weekend referendum, which fueled fears the conflict may escalate further and affect Russian oil shipments.

On the New York Mercantile Exchange, West Texas Intermediate crude oil for delivery in June traded at $100.53 a barrel during U.S. trading, up 0.54%. New York-traded oil futures hit a session low of $99.94 a barrel and a high of $100.93 a barrel.

The June contract settled down 0.27% at $99.99 a barrel on Friday.

Nymex oil futures were likely to find support at $99.76 a barrel, Friday's low, and resistance at $101.15 a barrel, Friday's high.

Pro-Russian separatists claimed victory in a weekend referendum on self-rule in the eastern Ukrainian city of Donetsk, which stirred concerns that the country is sliding closer to civil war.

The vote has been condemned by Ukraine’s government and the West, which has threatened to slap Russia with fresh sanctions, underlining concerns over a disruption to supplies from the region.

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.

Elsewhere, on the ICE Futures Exchange in London, Brent oil futures for June delivery were up 0.43% and trading at US$107.74 a barrel, while the spread between the Brent and U.S. crude contracts stood at US$7.21 a barrel.

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