Oil was little changed Tuesday as traders weighed the situation in Ukraine amid fears rising tension halt exports from Russia, Europe’s largest energy supplier.
The European markets reopened after a four-day Easter weekend, with subdued trades keeping volumes low and prices range-bound.
The crisis in Ukraine is still the major concern for the energy markets, but the extended growth in US crude stockpiles continues to weigh on prices.
An accord found by the U.S., Russia, Ukraine and the European Union to end violence in Eastern Ukraine last week in Geneva was overturned after an attack on a checkpoint manned by separatists left three people dead.
Three people were killed in a clash in Slovyansk in Ukraine, according to the Interior Ministry, while a senior Ukrainian security official charged Russia of exploiting the violence in the region to set grounds for an invasion.
The talks in Geneva called for illegal groups in Ukraine to disarm and return captured buildings to their owners. Also, in line with the agreement, the Ukrainian government prepared an amnesty law for pro-Russian protesters.
Meanwhile, the Barack Obama Administration opted to delay its decision about the Keystone XL pipeline that would help Canadian oil into the U.S.
The State Department said it will not make a recommendation until enquiries has been answer about the way the pipeline’s northern route through Nebraska was approved.
The southern part of the project started moving crude oil to the Texas Gulf Coast from Cushing, Oklahoma back in January.
As of 03:10 a.m. ET:
West Texas Intermediate for June delivery fell 10 cents to $104.27 a barrel on the New York Mercantile Exchange.
In London, Brent Crude traded flat at $109.95 a barrel.
World power and Iran will start working on drafting a long-term settlement of Iran’s nuclear program in talks in New York on May, according to the official state news agency IRNA reported on Sunday.
An agreement for the long dispute over Iran’s nuclear program would help Iran boost its exports and would be bearish for oil.
Oil investors are also keeping tabs on Libya’s shipments reopening, after two weeks ago the Tripoli government reached an agreement with the rebels in the east to end the eight-month occupation of oil ports.
Meanwhile, traders are waiting another possible build up in US supply data to assess the demand outlook in the world’s largest consumer.