Crude oil prices slipped early Monday, but concerns over supply from Russia in light of event in crisis-hit Ukraine continued to support the energy market with the start of the week.
Focus remain on the geopolitical tension in Ukraine, as pro-Russian activists clashed with pro-Kiev supporters in mass rallies across the former Soviet state yesterday, although fears of a looming war over Ukraine has eased. However, oil prices were underpinned over concerns US and European sanction on Moscow could trigger jitters in markets.
As of 03:48 a.m. ET:
- WTI crude for April delivery fell 1.23% to $101.32 a barrel
- ICE Brent crude fell 0.87% to $108.05 a barrel
- NYMEX natural gas fell 0.84% to $4.579
The Chinese economic front was also back into focus after Chinese data released over the weekend showed the world`s largest second-largest economy recorded an unexpected $22.98 billion trade deficit in February.
On Saturday, preliminary data from the General Administration of Customs showed China imported 23.05 million metric tons of crude oil in February, equivalent to 6.03 million barrel a day.
Crude oil imports were 115 higher than a year earlier, and down 18.1% from January, data showed.
Worries over China`s growth following the downbeat numbers will continue to put downward pressure on the energy market.
On the other hand, any unexpected twist in Russia’s incursion into the Crimean peninsula in the coming days will likely add on the tension.
Russia is one of the world`s biggest energy producers and exporters of natural gas to Western Europe.