Brent Supported By Uncertainty In Ukraine

Brent crude oil approached $110 on Friday morning and traded at $109.99 at 8:00 GMT as investors kept a close eye on Ukraine where the conflict between government forces and pro-Russia separatists escalated.

CNBC reported that Ukrainian forces have killed five pro-Russian separatists in an attempt to gain control of Eastern Ukrainian cities. The deaths mark the first use of lethal force since the crisis began, causing many to worry about how Moscow will respond.

Tension between the West and Russia reached an all time high as the US threatened to increase sanctions on Russia as the nation has not shown any signs of changing course. Meanwhile Russian officials demanded that US step in and have Ukraine cease its military operation.

Geopolitical tension in Libya also lent support to Brent prices as the nation’s return to normal export capacity hit a few snags. The rebels holding several of the nation’s eastern ports said they were not planning to reopen two of the terminals on Thursday. The ports will remain closed until the rebels are satisfied that the Tripoli government has held up its end of the deal to end the blockade.

US data also boosted Brent prices after durable goods data came in higher than expected. US durable goods orders rose by 2.6 percent in March, far surpassing the 2 percent increase that was expected. The data helped calm worries about the number one oil consuming nation after recent weak figures had some questioning whether or not the US’ recovery was still on track.