23 July 2014, New York – July 22 (Reuters) – Brent and U.S. crude settled lower after a choppy trading session on Tuesday as oil supplies remained unaffected by continuing violence in Iraq, Ukraine and Gaza.
The European Union threatened Russia on Tuesday with harsher sanctions over Ukraine that could inflict wider damage on its economy following the downing of a Malaysian airliner.
Israel pounded targets across the Gaza Strip on Tuesday, saying no ceasefire was near as U.S. and United Nations diplomats pursued talks on halting the fighting that has claimed more than 600 lives.
“We have events flaring up on the main screen and there are still problems in the Gaza Strip, but the thing is, we still don’t have a supply disruption,” said Gene McGillian, an analyst at Tradition Energy in Stamford, Connecticut. “The short-covering rebound of the previous days seems to be fading away and the market is retreating a little.”
Brent crude for September delivery fell by 35 cents to settle at $107.33 a barrel, after swinging between $107.20 and $108.40. U.S. oil for August delivery fell 17 cents to settle at $104.42 a barrel, down from a session high of $105.25.
The U.S. August contract expired on Tuesday. Its premium to September crude rose Tuesday to a session high of $2.50, reflecting traders’ concerns about low oil inventories at the Cushing, Oklahoma, delivery point for U.S. crude.