Oil prices steadied on Wednesday following a surge the day before, as traders awaited energy inventory data from the United States for demand clues regarding the world’s biggest crude consumer.
New York’s main contract West Texas Intermediate (WTI) for delivery in May fell 16 cents to $102.40 a barrel ahead of the stockpiles figures due 1430 GMT.
Brent North Sea crude for May edged up five cents to stand at $107.72.
Analysts expect the US government inventories report to show that crude oil stockpiles rose by one million barrels, on average, in the week ended April 4, according to a Wall Street Journal survey.
Traders were expected to focus also on the release of minutes from the first US Federal Reserve policy-meeting with new chairman Janet Yellen at the helm for further clues on the US economy.
Oil prices had meanwhile surged on Tuesday, with WTI jumping $2.12 to the highest level in a month after pro-Russian protesters seized buildings in the eastern Ukrainian city of Donetsk. Brent won $1.85.
Analysts said oil prices remained propped up by the heightened tensions in Eastern Europe.
“Investors should be wary and any escalation in tensions could throw global markets off tangent,” said Tang Hsin Jin at traders CMC Markets.
With Ukraine a key conduit for Russian gas to Europe, traders fear that any armed conflict will disrupt supplies and send oil and gas prices skyrocketing.
Russian deliveries account for 34 percent of the natural gas supplies to the European Union, according to the Soufan Group, a US-based intelligence firm.
AFP
