Oil slumps as Russia says some troops to return to bases
BNN Bloomberg
Oil retreated from the highest since 2014 as traders weighed a possible cooling in the Ukrainian crisis.
Oil retreated from the highest since 2014 as traders weighed a possible cooling in the Ukrainian crisis.
Brent futures fell as much as 2.1 per cent to trade below US$95 a barrel while futures in New York also slumped. Some Russian military units will start returning to their permanent bases on Tuesday after completing drills, Interfax reported, citing the Defense Ministry.
Crude has swung wildly this week amid a flurry of reports about the tensions over Ukraine. While the U.S. has warned an invasion may be imminent, Moscow is now calling for a diplomatic approach and has repeatedly denied it plans an assault.
The underlying oil market is one of the strongest in years. S&P Global Platts assessed the Dated Brent price, which values more than half of the world’s crude, at more than US$99 on Monday. Gauges of market strength along the futures curve are trading at some of their firmest levels on record as supply struggles to keep pace with booming demand.
“The only thing the market is really focused on at the moment is Russia-Ukraine,” said Warren Patterson, head of commodities strategy at ING Groep NV. “So developments on that front will be crucial for price direction.”
