Crude Benchmarks Ease Back as Russia-Ukraine Fears Ease

by Tim Bonett, KPI Bridge Oil
Tuesday March 4, 2014

Crude benchmarks retreated today, recovering somewhat from yesterday's 'knee jerk' reaction to Russia's actions in Crimea.

Supplies remain uninterrupted to the Druzhba Pipeline which carries 300,000 barrels a day of Russian oil via Ukraine to European refineries.

Russian President Vladimir Putin indicated today he reserves the right to protect Russian interests but that there was no such need to do so at this time.

In the US, investors are anticipating tomorrow's EIA figures which are expected to show a draw on supplies at Cushing but a build on total US stockpiles.

WTI fell $1.59/bbl to $103.33/bbl as Brent dropped $1.90/bbl, settling at $109.30/bbl. Bunker prices were softening in the primary ports.