Russia Threatens To Cut Gas Supplies

Brent crude oil started the week on the back foot as disappointing Chinese manufacturing data weighed on prices.

However, the commodity remained above $108 and traded at $108.43 at 5:08 GMT as investors kept a cautious eye on the escalating situation between Russia and Ukraine.

CNBC reported that HSBC's final Purchasing Manager's Index for China came in at 48.1, a modest improvement from March's reading but below the nation's preliminary reading.

The figure showed that China's manufacturing sector had contracted for the fourth straight month in April, confirming that the country's economic slowdown was prolonged.

However, prices saw a lift after US jobs data came in higher than expected and helped confirm that the nation's poor data in the first quarter was due to an unusually severe winter.

See also: Barron's Recap - India Is Open For Business

Employers in the US added 288,000 jobs in April, the nation's largest hiring increase since January 2012.

Oil prices also found support from the worsening situation in Ukraine, where violence has spread to the nation's western cities. Dozens more pro-Russian separatists were killed over the weekend after a seized government building caught fire in Odessa. On Sunday, a group of rebels stormed a police station and freed almost 70 activists.

Meanwhile, Russian officials have said that they are planning to cut back on natural gas supplies to Ukraine in June if the country does not prepay in May.

Ukraine is facing financial troubles in the midst of the current uprising, causing many to worry that the nation will default. If Russia cuts off its supplies to Ukraine, it could be detrimental for the rest of Europe as nearly half of the EU's gas supplies are piped through Ukraine.