Russian Threats Give Brent A Boost
Tension in Ukraine helped boost Brent to $109.25 at 8:40 GMT on Thursday morning.
The commodity was supported after Moscow promised a response in Ukraine if its interests came under attack.
The conflict in the eastern European nation has been going on for four months and despite a peace agreement, is showing no signs of letting up.
Pro-Russian Separatists have refused to vacate government buildings in several Ukrainian cities, which prompted Kiev to send in troops to restore order. CNBC reported that NATO officials have said that Russia has about 40,000 troops at the ready at the Ukrainian border, which has many worried that the nation can and will make good on its threats to intervene.
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If Moscow does step in, the US and the EU have vowed to step up economic sanctions on the nation in response. Further sanctions could mean a disruption in Russian gas supplies, which most European nations depend on.
However data from the Energy Information Administration kept a ceiling over prices as it showed that US stocks rose to their highest level since 1982 last week. US crude inventories were up 3.5 million barrels, far surpassing analyst expectations of a 2.3 million barrel increase.
Most saw the build in crude stocks as evidence that US refineries are having trouble accommodating the increase in local output.
Moving forward investors will be watching Middle Eastern nations like Iraq and Libya as they ramp up their oil exports.
Iraq’s southern oil export terminals have averaged 2.55 million barrels per day in April, leading many to believe that the nation will have a record high volume of oil exports this month.
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