Price Hike: Oil prices rebound on Ukraine tensions

Escalating Ukraine tensions and a strong US jobs report boost oil prices

WASHINGTON:
Escalating Ukraine tensions and a strong US jobs report boosted oil prices, traders said, pushing aside concerns about the mounting US crude stockpile. New York’s benchmark, West Texas Intermediate for delivery in June, climbed 34 cents to $99.76 a barrel. In London, Brent North Sea crude for June added 83 cents to close at $108.59 a barrel. “The escalating conflict in east Ukraine is allowing oil prices to recover after finding themselves under pressure,” said Commerzbank analyst Carsten Fritsch. Ukraine, a major conduit for Russian natural gas exports to Western Europe, is monitored closely by investors who are concerned that a full-scale armed conflict will disrupt supplies and send energy prices soaring. A robust US job report for April, with the jobless rate sharply falling to 6.3 percent, signaled a stronger economy, also helping to boost crude prices.


Published in The Express Tribune, May 4th, 2014.

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