Concerns about the rising pitch of tensions between Russia and Ukraine pushed up Brent crude oil futures on Wednesday as the energy commodity registered at north of $110 per barrel for the first time since early last month, according to Bloomberg.
Prior to the release of official data about stockpiles in the world's largest consumer, West Texas Intermediate crude oil futures also were climbing during the midweek trade session. Supplies are likely to have dropped for a seventh consecutive week, according to a poll administered by the news service.
Security forces with Ukraine embarked on an effort to dispel pro-Russian militants in the eastern region of the nation on Wednesday. The forces managed to re-take possession of an airport as reports stated the separatists were supported by Russian military forces. Ukraine ousted its prime minister in February, prompting Russian forces to file in the Crimea region of the nation.
"Oil is being driven more by the Ukraine situation," states a Wednesday email authored by global head of market analytics Guy Wolf with Marex Spectron Group in London, according to Bloomberg. "Does this situation mean more intense disagreements elsewhere, as in the Cold War? In a tight market, such as WTI, anything can have an amplified effect."
At 9:14 a.m. on Wednesday, WTI crude oil futures rose 0.9 percent, a 93-cent lift to $104.68 per barrel. Brent crude oil futures climbed 0.72 percent, a 79-cent advance to $110.15 per barrel.
Chinese GDP low but strong
The energy commodity's upward drive was aided by economic data released by China, the globe's second-largest consumer.
Gross domestic product in China developed 1.4 percent during the first quarter of this year as compared to the final quarter of last year, according to data released by the National Bureau of Statistics.
"Also, the market has been preoccupied by all the geopolitics, the tensions," commodities analyst Sijin Cheng with Barclays Plc in Singapore told the news source on Wednesday. "Given that context, the reaction has been relatively muted."
China is projected to encompass about 11 percent of the world's supply of oil in 2014, according to data released by the International Energy Agency in France.
Reduced pace in China
The Chinese GDP data reflects the slowest development since the third quarter of 2012, according to Reuters.
However, the data pushed past average forecasts issued by analysts and economists polled by the news source.
An oil-rich African nation is poised to greatly capitalize on production of the energy commodity.
Ghana delves into oil commerce
Voice of America reports Ghana is aiming to propel forward as a result of a newly implemented law.
The Petroleum Regulation on Local Content and Participation aims to augment the job market and enhance business sentiment while encouraging development. The law also permits citizens of the West African nation to own no more than 5 percent of investments by worldwide companies.
The country started with commercial production of oil in 2010 after having discovered off-shore deposits of the energy commodity three years prior. Chief executive officer Theo Ahwireng with the Ghana Petroleum Commission said the nation is encouraging nationals to become involved with the effort as it stands to be beneficial to the country's economy.
"It is through participation that you develop the skills of the people, so that at the end of the day when the oil wealth is gone, you will leave an economy with skilled people and skilled business," the chief executive officer told Voice of America. "We've had fantastic response from a great number of the companies. We have sat with them to help them go through the procurement process and I must say the support has been very good."
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