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UPDATE 7-Oil pares losses as Euro recovers

* Ukraine president-elect works on peace plan with Western leaders

* ECB announces rate cut, dollar gains

* Coming up: U.S. monthly jobs report, Friday 1230 GMT

(Updates prices, changes byline, dateline (pvs LONDON)

NEW YORK, June 5 (Reuters) - U.S. crude oil fell to a two-week low on Thursday in choppy trading as the dollar gained against the euro after the European Central Bank cut interest rates to record lows and announced negative interest rates on overnight deposits.

Brent and U.S. crude futures both pared losses as the euro recovered against the dollar, after Brent earlier hit a three-week low on the ECB announcement.

Crude, priced in dollars, comes under pressure when the greenback rises as it becomes less affordable to holders of other currencies.

U.S. crude fell by 10 cents to $102.54 by 11:28 a.m. EDT (1528 GMT), after earlier dropping to $101.60, its lowest since May 16.

Brent crude futures fell for a fifth session, their longest losing streak since early January, and were down 6 cents at $108.34 a barrel. Earlier Brent hit $107.77, its lowest since May 9.

"You have this tug-of-war going on. Hedge funds are increasing their net longs in the Brent, and that's going to be supportive for WTI," said Richard Ilczyszyn, chief market strategist and founder of iitrader.com LLC in Chicago, referring to West Texas Intermediate, the benchmark for U.S. crude.

"Europeans are still nervous over supply, so they're bidding up Brent prices."

Last month, political tensions pushed Brent above $111 but prices have shed about 3 percent since then.

Ukraine's President-elect Petro Poroshenko said he may discuss a plan to end violence in eastern Ukraine with Russian leader Vladimir Putin.

Putin will hold face-to-face meetings with German Chancellor Angela Merkel, French President Francois Hollande and British Prime Minister David Cameron at a D-Day anniversary gathering in France later this week.

This helped allay concerns that a conflict in Ukraine, a main gas supply route to Europe from Russia, could disrupt oil supplies as well.

The Labor Department will release its monthly jobs report, which is closely watched by financial markets around the globe, on Friday at 8:30 a.m. (1230 GMT).

(Additional reporting by Lorenzo Ligato in New York, Simon Falish in London, Florence Tan in Singapore; Editing by Dale Hudson, Jason Neely and Alden Bentley)