Oil sheds all of Ukraine-inspired gains

Published: Wednesday, 5 Mar 2014 | 10:58 AM ET

By: Reuters with CNBC.com

Getty Images

Brent crude fell for the second straight session on Wednesday, dropping below $109 a barrel on an easing of fears that Russia's incursion into Ukraine could lead to war.

Brent is now more than $3 below a two-month high hit at the start of the week following Russia's seizure of Ukraine's autonomous Crimea region, with prices having retraced all the gains seen on Monday.

Crude added to the session's losses after U.S. crude inventories rose, as gasoline and distillate stockpiles dropped. The Energy Information Administration reported oil stockpiles jumped by 1.4 million barrels, while gas and distillates fell by 1.6 million barrels and 1.4 million, respectively.

U.S. crude for April delivery was down more than $1 near $102, after falling $1.59 on Tuesday. The U.S. contract hit its highest since Sept. 20 on Monday at $105.22. Its discount to Brent narrowed to as little as $5.59 on Wednesday, the smallest gap since October.

April Brent was down nearly $1 around $108 a barrel, extending Tuesday's $1.90 drop. The contract hit $112.39 a barrel on Monday, its highest since Dec. 30. Crude held losses after data showed private payroll growth was less than expected in February.

Murkowski: Expand sales of U.S. oil abroad now

Senator Lisa Murkowski (R-Alaska) speaks to CNBC's Sharon Epperson about her call to expand oil exports from the United States. She also discusses the importance of the Keystone pipeline.

Go here to see the original:
Oil sheds all of Ukraine-inspired gains