West Texas Intermediate and Brent crudes dropped from the highest price since September amid speculation that heightened tension between Russia and Ukraine is unlikely to result in a disruption to oil supplies.
WTI for April delivery slid as much as $1.46 to $103.46 a barrel in electronic trading on the New York Mercantile Exchange and was at $103.56 as of 11:09 a.m. London time. The contract rose 2.3 percent to $104.92 yesterday, the highest close since Sept. 19. The volume of all futures traded was almost double above the 100-day average.
Brent for April settlement dropped as much as $1.89, or 1.7 percent, to $109.31 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude was at a premium of $5.95 to WTI on ICE, dipping below $6 a barrel for the first time since Oct. 7. The spread closed at $6.28 yesterday, narrowing for a fifth day.