Brent crude oil futures rose on Tuesday on renewed geopolitical risk over Russia and supply disruptions in Nigeria and Libya, while U.S. crude was pressured by a stronger U.S. dollar.
Major industrialized nations warned Moscow of tougher economic sanctions Monday if it goes beyond the seizure of Crimea. On Tuesday, U.S. President Barack Obama said in a speech at The Hague that Russia's annexation of the Black Sea region was not a "done deal" because the international community would not recognize it.
rose 20 cents to over $107. U.S. crude rose as much as 77 cents immediately following Obama's speech, but reversed gains as the U.S. dollar strengthened. The U.S. contract ended down 41 cents at $99.19 per barrel.
Royal Dutch Shell declared force majeure on Nigeria's Forcados crude exports on Thursday, due to a pipeline leak caused by oil theft. In Libya, production will be cut by about 80,000 barrels per day to about 150,000 bpd on Tuesday after a large oilfield was shut.
Continued speculation that China will act to support its slowing economy along with robust consumer confidence numbers in the U.S. provided global oil prices with support. But a stronger U.S. dollar and news that the U.S. Coast Guard reopened the Houston Ship Channel to oil tankers that had been halted in recent days hurt dollar-denominated commodities.
Leaders of the Group of Seven nations, meeting without Russia on Monday, agreed their energy ministers would work together to reduce dependence on Russian oil and gas and increase energy security.
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