Oil markets remained under pressure heading into the weekend, after US crude supplies rose to the highest level since November amid tension over possible disruption out of the Ukraine situation.
West Texas Intermediate is ready to mark a third weekly drop, as US oil inventories rose for a ninth week, according to data by the Energy Information Administration (EIA) two days ago.
The supply outlook continues to week on the oil prices in the US, the world`s biggest consumer.
Brent, the benchmark for European oil, was little changed after rising yesterday on news of Washington expanding its punishment to 20 more Russian officials, including allies of Russian Presdient Vladimr Putin, adding pressre on Russia after it seized control of Crimea from Ukraine.
As of 04:55 a.m. ET:
- WTI Crude for May delivery fell 0.21% to $98.69 a barrel
- Brent Crude fell 0.06% to $106.39 a barrel
Yesterday, Russia`s lower house of parliament overwhelmingly approved a treaty to annex the Crimea from Ukraine, prompting broader sanction from the US.
The upper House of Russia was hold a similiar vote Friday, giving the green light to the treaty that was signed by the Russian President.
In response to annexation, Western sanction by the US and European leaders were broadened on Russia, including officials and further possible punishments is expected if the Ukraine situation escalated further.
volatility remains the main theme across the oil markets, with a weakening outlook from China, the world`s second largest oil consumer, and stronger dollar after the Federal Reserve hinted an interest rate hike sooner than expected.
However, the selling pressure could be limited if further tension reignite out of Crimea crisis.