Oil kicked higher by Ukraine's crisis; inventories loom
London (May 14) Crude rose on Wednesday, with Brent reaching a two-week high on the deteriorating situation in the Ukraine and expectations of a fall in U.S. crude oil inventories.
Seven soldiers were killed and seven wounded in an ambush on Tuesday in the biggest single loss of life by the Ukrainian army since it was sent to east to oppose pro-Russian separatist groups.
Brent crude for June delivery was up 40 cents under $110 a barrel, after closing up 83 cents. The June contract expires on Thursday. U.S. oil was up 40 cents at $102 a barrel, after finishing $1.11 higher in the previous session at its highest settlement since April 24.
U.S. crude also rose to a two-week high on Wednesday, continuing the momentum of the oil stocks draw in the United States and expectations that crude inventories fell further last week as the summer driving season nears.The U.S. Energy Information Administration will release its oil data later on Wednesday.
Stocks of U.S. crude oil at Cushing, Oklahoma, already dropped to their lowest levels since 2008 in the week to May 2.
Global supplies could be set to increase with the resumption of a major Libyan oilfield.