Oil falls on profit-taking, all eyes on Russia, Ukraine

Crude oil storage tanks are seen from above on the Cushing oil hub, in Cushing, Oklahoma, March 24, 2016. Image taken March 24, 2016. REUTERS/Nick Oxford

TOKYO, Feb 15 (Reuters) – Oil costs fell on Tuesday as buyers took income from the day gone by’s rally to seven-year highs and as world inventory markets slumped, though losses had been capped by fears that Russia may invade Ukraine and disrupt provides.

Brent crude futures was at $96.19 a barrel by 0205 GMT, down 29 cents, or 0.3%, after rising $2.04 on Monday.

U.S. West Texas Intermediate (WTI) crude dropped 36 cents, or 0.4%, to $95.10 a barrel, after gaining $2.36 the day gone by.

Each benchmarks hit their highest since September 2014 on Monday, with Brent touching $96.78 and WTI reaching $95.82.

Russia is likely one of the world’s largest oil and fuel producers, and fears it might invade Ukraine have pushed a rally in oil in the direction of $100 per barrel, a degree not seen since 2014.

“Buyers scooped up income from Monday’s rally although they had been hesitant to take contemporary quick positions resulting from rising tensions in Jap Europe,” mentioned Hiroyuki Kikukawa, common supervisor of analysis at Nissan Securities.

“Oil markets might even see an actual correction if the Iran-U.S. nuclear deal is agreed or world equities tumble additional amid worries over inflation and tighter financial coverage by central banks,” he mentioned.

Portfolio managers are nonetheless bullish on the outlook for oil. However costs have already risen by greater than 30% in lower than three months and there are rising issues about rising inflation and rates of interest, prompting fund managers to take some revenue final week. learn extra

Buyers are additionally watching talks between the USA and Iran. The Iranian international minister mentioned Iran was “in a rush” to succeed in a swift settlement in nuclear talks in Vienna, offered its nationwide pursuits are protected. learn extra

World shares slid on Monday on U.S. warnings that Russia might quickly invade Ukraine.

Ukrainian President Volodymyr Zelenskiy known as on Ukrainians to fly the nation’s flags from buildings and sing the nationwide anthem in unison on Feb. 16, a date that some Western media have cited as a doable begin of a Russian invasion. learn extra

A number of Western media organisations have quoted U.S. and different officers citing the date as when Russian forces could be prepared for an assault.

In the meantime, Worldwide Vitality Company (IEA) chief Fatih Birol urged OPEC+, the Group of the Petroleum Exporting International locations and allied producers, to shut the hole between phrases and its actions. learn extra

Shortfalls in OPEC+ manufacturing and spare capability issues are prone to hold the oil market tight and costs might hit $125 a barrel as early because the second quarter of this 12 months, JP Morgan World Fairness Analysis mentioned. learn extra

Reporting by Yuka Obayashi; Enhancing by Tom Hogue

: The Thomson Reuters Trust Principles.