Oil higher as Ukraine rebels escalate conflict
May 27, 2014
Join The Discussion
The Associated Press
The price of oil edged higher Tuesday on worries over potential supply disruptions after pro-Russian rebels escalated the Ukrainian conflict by occupying a major airport, just hours after a billionaire businessman won Ukraine's presidential election.
Prices had fallen after Ukraine's president-elect, Petro Poroshenko, said Monday he wanted talks with Moscow on ending the insurgency in the country's east.
Benchmark crude for July delivery was up 5 cents to $104.40 a barrel at 0625 GMT in electronic trading on the New York Mercantile Exchange. Due to a U.S. public holiday, the contract last settled on Friday, when it closed at $104.35.
Brent crude, a benchmark for international oils, gained 41 cents to $110.73 on the ICE exchange in London.
Ukraine is a key conduit for Russian gas deliveries to Europe. A proposed solution to a dispute over Ukrainian natural gas debts to Moscow raised hopes that a supply cutoff would be averted. Russia's acceptance of Poroshenko's victory was also regarded as a sign of easing tensions.
The resurgence of fighting, as the government in Kiev responded with an airstrike to the rebels' occupation of the airport in Donetsk, a city of about 1 million in eastern Ukraine, underscored the uncertainties that remain.
In other energy futures trading in New York.
— Wholesale gasoline was down 0.2 cent at $3.005 a gallon.
— Natural gas shed 1.5 cents to $4.39 per 1,000 cubic feet.
— Heating oil gained 1 cent to $2.965 a gallon.