(Bloomberg) -- Oil eased from the highest since 2014 as traders weighed Russia’s intentions toward Ukraine against the outlook for global demand.
West Texas Intermediate fell after topping $95 a barrel on Monday. Although the U.S. has warned a Russian invasion of its smaller neighbor may be imminent, Moscow is calling for a diplomatic approach while positioning thousands of troops along Ukraine’s borders. Russia denies it plans an assault.
Crude has roared higher in 2022 as the prolonged crisis in Europe stoked concerns over potential disruptions to energy supplies just as global consumption booms. The rally has drained inventories and lifted global crude benchmark Brent to within a few dollars of $100 a barrel.
Falling stockpiles have been a major driver of recent gains, and later on Tuesday the industry-funded American Petroleum Institute will issue estimates for changes in U.S. holdings. Inventories at the key storage hub at Cushing, Oklahoma have sunk for the past five weeks, according to government data.
©2022 Bloomberg L.P.