Brent Rises On Worries About Russia Intervening In Ukraine Again
Tension in Ukraine escalated this week after pro-Russian protesters took over public buildings in several eastern Ukrainian nations.
The events renewed concern that Russia could send troops into the nation, which would reignite the conflict between Moscow and the West. Brent prices climbed on the increasing worry and traded at $106.10 at 5:00 GMT on Tuesday morning.
However, the commodity's gains were limited as Libya prepared to resume exports at several ports which are being reopened.
Ukrainian leaders claim Russia has orchestrated several separatist movements in its eastern cities in order to justify sending in more troops and dividing the country further.
Three cities are plagued with separatist protests which the government says is chillingly reminiscent of the events that took place in Crimea, before it was seized and annexed in March.
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Meanwhile, tension faded in Libya where the government and opposition groups were able to reach an agreement to release some of the nation's oil terminals from seizure. Opposition groups have agreed to slowly reopen the nation's oilfields after shutting them down for eight months in protest.
Though many were skeptical that the ports would actually reopen, CNBC reported that workers in red jumpsuits were seen preparing to load tankers at the nation's Zueitina oil port on Monday. The reintroduction of Libyan supply kept a ceiling over Brent prices.
Brent's gains from the conflict in Ukraine were also mitigated by easing tension between the West and Iran as officials from both sides prepared to resume negotiations over Tehran's nuclear program on Tuesday and Wednesday. Both have said they are hoping to reach a solid agreement to resolve conflict over the issue by July 20.
Such an agreement would likely do away with sanctions on Iranian oil, thus increasing the global market's supply further and depressing prices.
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