US oil prices fall despite Ukraine tensions
Oil prices retreated on Friday despite worries over the mounting tensions around Ukraine.
NEW YORK (AFP) - Oil prices retreated on Friday, with the New York market finishing sharply lower for the week as mounting US stockpiles appeared to counter worries over the mounting tensions around Ukraine.
In New York WTI crude for June delivery gave up $1.34 at $100.60 a barrel, taking the US benchmark to a loss of $3.70 a barrel for the week.
In London trade Brent North Sea crude for June dropped 75 cents to settle at $109.58 a barrel, roughly where it was a week ago.
In London the Ukraine crisis kept the focus on how a feared outbreak of fighting between Ukrainian and Russian troops could impact the European economy and particularly energy supplies. Russia is a key supplier of oil and natural gas to Western Europe.
On Friday leaders in Russia and Ukraine swapped charges against each other while Western leaders threatened Moscow with fresh sanctions. Kiev accused Moscow of seeking to trigger a "third world war" after Russian troops launched military exercises on Ukraine's eastern border.
"Renewed tensions over Ukraine between Russia and the West have triggered fresh worries about possible oil supplies issues in the region," said Myrto Sokou, senior research analyst at Sucden brokers.
An S&P credit downgrade of Russia added to the pressure on Russia, already facing heavy capital flight due to the tensions over Ukraine.
But in the United States, the record level of commercial crude stockpiles is putting downward pressure on prices.
Michael Lynch of Strategic Energy and Economic Research said that investors took profits and moved into cash ahead of the weekend amid the Ukraine political uncertainty.
