Brent value dropped today after Russian President Vladimir Putin called back troops deployed near the Ukraine border, easing fears of war between the two countries.
Brent crude dropped by $0.12 to $109.18 a barrel, while US oil was up by $0.8 to $103.41, reported Reuters.
Crude prices dropped after the news that Russian troops were recalled from the Ukraine border with Putin saying that force will be used as a ‘last resort’, which relieved concerns of energy supply disruption to Europe.
The crisis caused a sell-off in global equities in the markets on Monday as investors worried that the oil supply from Russia could be disrupted or could face sanctions.
Libyan El Sharara oilfield production is expected to resume, as officials are working to address protesters’ demands.
Libyan production has fallen from 1.4 million barrels per day in July to little over 200,000bpd due to protests that closed the oilfield in the eastern region of the country.
Crude prices were more pressured after American Petroleum Institute data showed that the US commercial crude oil inventories rose by 1.2 million barrels last week.
The data also showed stockpiles at Cushing, Oklahoma, where the American benchmark is priced, fell by 2.6 million barrels.
Investors are waiting for the US Energy Information Administration’s data, which is set for release later today.
But oil could find some support as China Premier Li Keqiang said the 2014 growth target is pegged at 7.5%, while China also aims to keep inflation around 3.5% for 2014.
The risk of war still exists as Russian forces fired warning shots in a confrontation with Ukrainian servicemen, and Russian navy ships were reported to have blockaded the strait separating the Ukrainian Black Sea peninsula from Russia.
Image: Putin orders troops in military exercise back to base. Photo: courtesy of Michelle Meiklejohn.