Oil prices are rising due to the situation in Ukraine

Oil prices are rising due to the situation in Ukraine

oil price

Oil prices are rising due to the situation in Ukraine, but the recovery is constrained by the forthcoming resumption of oil shipments from Libyan ports.

At 9:10 GMT, Brent futures for May delivery rose $ 0.32 to $ 106.14 per barrel, while WTI futures for May delivery – at $ 0.60 to $ 101.04 per barrel.

Kiev called seizure of administrative buildings in major centers in eastern Ukraine ” second wave of Russian special operation ” against the country and promised to prevent a recurrence of the Crimean scenario , enhancing the protection order on the Russian-speaking east and toughening laws against separatism.

Rising oil prices comes amid downturn in stock markets and a weaker dollar .

“One of the reasons for the increase in prices for Brent – is the return of investors to the basics and very clear trend of the world economy to grow ,” – said the chief strategist at CMC Markets in Sydney Michael McCarthy.

U.S. stock index Nasdaq Composite over the past three sessions , including Monday, showed the strongest decline since November 2011 , and the S & P 500 over the same period fell by the maximum number of points from the end of January.

” Equity markets rose on the eve of the quarterly reports , often reaching record highs , so many investors are worried ,” – said McCarthy.

The rise in prices is constrained by the forthcoming resumption of supplies from Libyan ports that can reach 700,000 barrels per day.

“This is potentially one percent of average daily global supply. Though this significant volume , it does not change the overall picture ,” – said McCarthy.

Investors continue to follow the negotiations on Iran’s nuclear program , the new round of which will take place in Vienna on Tuesday and Wednesday . Denied U.S. allegations that Iran exports more oil than allow international sanctions , and suggest that the total volume of exports will not exceed the target .

On the eve of weekly reports on crude oil inventories in the U.S. Reuters poll of analysts suggest that last week’s inventories increased by 1.9 million barrels , while stocks of petroleum products declined.

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