Brent oil rose as sanctions against Russia over the Ukraine crisis were strengthened and gunmen opened fire in Libya’s parliament. West Texas Intermediate advanced before a U.S. government inventory report.
Negotiations to halt Iran’s nuclear-enrichment program will probably fail, setting the stage for full implementation of U.S. and European Union sanctions against the nation’s oil exports, Societe Generale SA said.
West Texas Intermediate crude fell the most in three weeks as Syria agreed to a Russian plan to surrender its chemical weapons, easing concern that the conflict will escalate and disrupt oil shipments from the Middle East.
Brent crude may “spike briefly” to $150 a barrel if a U.S.-led attack on Syria sparks further conflict in the Middle East and leads to supply disruptions, Societe Generale SA said in a report e-mailed today.
Commodities declined from the highest level in almost six months on speculation that the threat to energy and agricultural supplies from escalating tension in Ukraine’s Crimea region may be exaggerated.