Ukraine aggression triggers modest spike in crude oil price

Brent and US crude futures jumped more than $1 a barrel on news that Ukraine forces had engaged a Russian armored column on Ukrainian soil. Ukrainian artillery destroyed a “significant” part of a Russian armored column that crossed into Ukraine.

Russia, a major oil and natural gas producer, denied its forces crossed into Ukraine and accused Kiev of trying to sabotage deliveries of humanitarian aid.

Ahead of the rally, Brent and U.S. crude futures had posted modest gains attempting to stabilize after signs of faltering economic growth and ample global crude supply sent Brent to a 13-month low less than a week earlier.

Front-month October Brent crude rose $1.46 to settle at $103.53 a barrel, after retreating from a session high of $103.76. The September Brent contract fell $2.27 to go off the board at $102.01, the lowest settlement for front-month prices since June 2013. US September crude rose $1.77 to settle at $97.35 a barrel, after hitting $97.41 earlier in the session. 

Oil prices were also pressured by news of OPEC crude production at a five-month high and Libya’s increasing exports and reopened ports.