Share

Oil prices up on Ukraine tensions

Singapore - Oil prices rose in Asia on Friday supported by renewed Russia-Ukraine tensions and upbeat US economic data, analysts said.

US benchmark West Texas Intermediate for October delivery was up 27 cents at $94.82 while Brent crude for October advanced 33c to $102.79 in afternoon trade.

Ukraine and the West said on Thursday that Russian troops are actively involved supporting pro-Kremlin separatists who have been fighting against Kiev's rule since April.

Nato said at least 1 000 Russian troops were on the ground in east Ukraine but Moscow insisted none of its soldiers were in the country.

The United States warned it was considering new sanctions against Russia over the latest development.

Desmond Chua, market analyst at CMC Markets in Singapore, said fresh sanctions "may then trigger further retaliatory measures that would weigh on the euro bloc".

The intensified standoff between the neighbours, seen as the worst East-West crisis since the end of the Cold War, has sparked fears of a full-fledged war.

Such a development could cause energy prices to surge as Russia is the world's number-two oil producer, and Ukraine is a key conduit for Moscow's gas exports to Europe.

Stronger-than-expected US economic growth data meanwhile raised hopes for stronger demand in the world's largest oil consumer.

The US Commerce Department said Thursday the country's economy expanded at an annual rate of 4.2% in the second quarter, revising upward its July estimate of 4.0%.

Chua said the latest figure has placed the world's biggest economy "on track for growth forecasts which could spur a quicker pace of (monetary) tightening".

The US Federal Reserve has previously signalled that it will only hike interest rates late next year, but market watchers say robust US economic data could shorten the central bank's timetable.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.08
-0.9%
Rand - Pound
24.03
-0.6%
Rand - Euro
20.57
-0.5%
Rand - Aus dollar
12.38
-0.2%
Rand - Yen
0.13
-0.9%
Platinum
890.97
-0.7%
Palladium
988.99
-1.3%
Gold
2,195.56
+0.0%
Silver
24.43
-0.9%
Brent Crude
86.09
-0.2%
Top 40
67,885
+0.3%
All Share
74,077
+0.2%
Resource 10
56,208
+1.0%
Industrial 25
103,636
+0.4%
Financial 15
16,471
-0.3%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders