Oil Higher On Ukraine Tensions, Data, But Posts Second Monthly Fall


NEW YORK, Aug 29 (Reuters) - Crude oil prices posted their second straight monthly losses, despite rising on Friday on worries that the intensifying Ukraine crisis may trigger more sanctions and as U.S. economic data portended strong demand in the world's largest oil consumer.

U.S. crude oil rose for a fourth straight session after data showed consumer confidence rose in August to a seven-year high, although consumer spending dipped 0.1 percent.

The Institute for Supply Management-Chicago said its business barometer shot up to 64.3 this month from 52.6 in July. It was the index's biggest monthly point gain since July 1983 and pointed to continued strength in the manufacturing sector

"The strong data in Chicago manufacturing is making people think that there could be something going on that will show up in demand numbers shortly," said Phil Flynn, an analyst at Price Futures Group in Chicago, Illinois.

Brent crude oil rose after the government in Kiev said Russian troops had entered Ukraine in support of pro-Moscow rebels, intensifying a separatist war and prompting alarm among Kiev's Western allies, as well as fears of new sanctions that could target Russia's energy sector.

Russia is Europe's biggest supplier of oil, coal and natural gas, meeting around a third of demand for all those fuels, according to EU data. It receives in return some $250 billion a year, or around two-thirds of government revenue.

Brent for October delivery rose 73 cents to settle at $103.19 a barrel, while U.S. crude gained $1.41 to $95.96 a barrel.


View Full Article


Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.