Oil Falls Nearly 2% As Russia-Ukraine Fears Ease

U.S. gasoline RBOB fell by more than 3 cents to $2.9853 per gallon after it settled more than 4 cents higher a day earlier.

U.S. commercial crude oil inventories rose by 1.2 million barrels last week, in line with expectations, inventory data released by the American Petroleum Institute showed on Tuesday. Stockpiles at Cushing, Oklahoma, where the American benchmark is priced, fell by 2.6 million barrels, the data showed.

The government's Energy Information Administration will publish its data on Wednesday at 10:30 a.m. EST.

Supply Concerns

Putin's statements raised investors' hopes for a peaceful resolution with Ukraine. The crisis caused a sell-off in global equities on Monday as investors worried the oil supply from Russia, the world's second largest producer, could be disrupted or subject to sanctions.

Imports of Russian oil are so crucial for Europe that it is unlikely sanctions will be imposed, said Seth Kleinman, head of energy research at Citi.

In Libya, top officials production at the El Sharara oilfield may resume as they are working to address protesters demands. Production there has fallen to little over 200,000 barrels per day from 1.4 million bpd in July due to protests that closed the oilfield in the eastern region of the country.

(Additional reporting by Simon Falush and Shadi Bushra in London, Florence Tan in Singapore; Editing by Marguerita Choy)


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