West Texas Intermediate crude dropped from the highest price since September amid speculation that heightened tension between Russia and Ukraine is unlikely to result in a disruption to oil supplies.
WTI futures fell as much as 1.5 percent, declining for the first time in three days. Russian President Vladimir Putin told reporters at his residence near Moscow that there’s no immediate need to invade Ukraine and that Russia isn’t considering absorbing the Black Sea region of Crimea. Investor fears of a supply disruption are misplaced, according to Societe Generale SA. WTI’s rally was unsustainable, a technical indicator shows.
“For the moment the position with regard to Ukraine has stabilized but it remains to be seen what will happen to the loyal Ukrainian forces surrounded in Crimea,” said Christopher Bellew, a senior broker at Jefferies Bache Ltd. in London.
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