Brent crude traded above $110 a barrel today, amid supply disruption worries in Ukraine and Libya.
Brent was down ten cents to reach $110.22 a barrel and US oil declined 15 cents to settle $104.20 a barrel, reported Reuters.
Several pro-Russian rebels seized an airport in Ukraine, whose military launched air strikes and a paratrooper assault against the rebels.
Reuters reported that the Ukraine Government rejected any negotiations with terrorists and said a robust military campaign in the east should be able to put down a separatist revolt in a matter of hours.
The news is concerning investors who are worried that the conflict may interrupt Russian oil supplies to the West, as Ukraine is a main gas supply route to Europe from Russia.
According to Reuters, the leader of protesters occupying Libya’s oil ports said he did not recognise Prime Minister Ahmed Maiteeq’s new government and indicated that a previously agreed deal to end his blockade could be in jeopardy.
Libya’s oil output reduced to just 160,000bpd compared with 1.4 million barrels per day before the civil war, which began in 2011.
Oil, particularly Brent, also gained support from demand growth forecasts due to expectations that the European Central Bank is preparing a package of policy options to provide some stimulus for the euro zone economy.