Brent Pushes Higher On Supply Concerns

Brent crude oil prices found renewed momentum on Tuesday as the conflict in Ukraine worsened despite the president-elect’s efforts to end the insurgency in the east through peaceful negotiation.

Petro Poroshenko, voted in as the nation’s new president, said on Monday that he wanted to arrange talks with Moscow to put an end to the turmoil in the eastern part of the country.

However, pro-Russian separatists ratcheted up the tension just hours after Poroshenko made his intentions known by taking control of an airport.

Brent prices responded with a lift as many worried about supply interruptions as much of Russia’s oil travels via Ukraine. The commodity traded at $110.61 at 7:18 GMT on Tuesday morning with geopolitical tension being the main driver.

See also: Vladimir Putin's International Economic Recap

On Tuesday, CNBC reported that Ukraine launched air strikes against rebel groups in response to the airport takeover. Poroshenko said he was confident that his military campaign would quash the separatist revolt in “a matter of hours."

Meanwhile, in Libya protesters continued to blockade the nation’s export terminals, saying they would not recognize Prime Minister Ahmed Maiteeq’s new government and thus may not honor the previous agreement to return the ports to government control.

Moving forward investors will be focused on a host of US and European data due out this week for a better picture of the global demand outlook. Eurozone data will be especially important, as the bank is expected to make a policy move at next week’s meeting.

Most analysts see Brent prices rising if the ECB introduces measures to help stimulate the economy at its June 5 meeting.