Investing.com - Crude oil futures were holding steady close to six-week highs on Thursday despite a large increase in oil stockpiles last week as the escalating conflict in Ukraine underpinned prices.
On the New York Mercantile Exchange, crude oil futures for delivery in May dipped 0.04% to $103.72, holding below Wednesday’s peaks of $104.97. Crude was trading in a range of $103.63 to $104.28.
Concerns over the situation in eastern Ukraine remained supportive of oil prices, after three pro-Russian separatists were killed in clashes with Ukrainian forces on Wednesday.
The U.S., Russia, the European Union and Ukraine were to hold crisis talks in Geneva on Thursday.
Concerns that the West may impose new sanctions against Russia fanned fears over possible supply disruptions. Russia is the world’s second largest oil exporter after Saudi Arabia.
The slightly weaker dollar also supported crude after Federal Reserve Chair Janet Yellen said monetary policy will need to remain accommodative for some time, citing slackness in the labor market and low inflation.
Oil prices ended Wednesday’s session flat after the U.S. Energy Information Administration said in its weekly report that crude oil inventories rose by 10.01 million barrels in the week ended April 11, compared to expectations for a build of 2.25 million barrels. It was the largest one-week increase in U.S. oil stockpiles in 13 years.
Total U.S. crude oil inventories stood at 394.1 million barrels as of last week, 3.4 million barrels below the peak reached in May 2013.
The EIA said total motor gasoline inventories decreased by 0.2 million barrels, compared to forecasts for a decline of 1.66 million barrels, while distillate stockpiles decreased by 1.27 million barrels.
Meanwhile, Brent oil for June delivery was down 0.21% to $109.37 a barrel on the ICE Futures Exchange in London, while the spread between the Brent and U.S. crude contracts stood at $5.65.