Commodity Market: US Crude Oil recovers from one-week lows after report of mortar shelling in Ukraine

Futures on US West Texas Intermediate Crude Oil recovered from a one-week low, registered earlier on Thursday, after a report by Russian state news agency RIA of mortar shelling in Ukraine.

Separatists in eastern Ukraine, backed by Russia, accused Kyiv government forces on Thursday of opening fire on their territory four times in the past 24 hours.

Initial concerns of a cross-border confrontation, however, were eased a bit, as details suggested the incident had occurred within the contested area of Donbass.

Still, an escalation of the years-long conflict with Donbass separatists could heighten tensions between Moscow and the West.

Oil prices have been heavily affected in recent weeks by developments surrounding the Russia-Ukraine situation, as there have been concerns that supply disruptions from Russia in a tight global market could drive the commodity to $100 per barrel.

Earlier, crude prices dropped after France and Iran announced they were moving closer to an agreement to salvage Iran’s 2015 nuclear deal with world powers.

“Positive news from the U.S.-Iran nuclear negotiations is providing much-needed relief to global oil prices, as the possibility of new crude supplies reduces the supply-demand deficit,” Claudio Galimberti, senior vice president of Rystad Energy, was quoted as saying by Reuters.

Eurasia Group said in a research note that, in case of a deal, Iran would be able to ramp up supplies faster than following the 2015 agreement.

As of 8:58 GMT on Thursday WTI Crude Oil Futures were retreating 2.71% to trade at $91.12 per barrel. Earlier in the trading session the black liquid plunged as low as $88.83 per barrel, which has been its weakest price level since February 9th ($88.41 per barrel).

At the same time, Brent Oil Futures were gaining 2.07% on the day to trade at $93.62 per barrel. Yesterday the commodity slipped as low as $91.15 per barrel, which has been its weakest price level since February 11th ($90.56 per barrel).

Daily Pivot Levels (traditional method of calculation) – WTI Crude Oil Futures

Central Pivot – $92.89
R1 – $95.78
R2 – $97.90
R3 – $100.79
R4 – $103.68

S1 – $90.77
S2 – $87.88
S3 – $85.76
S4 – $83.64

Daily Pivot Levels (traditional method of calculation) – Brent Oil Futures

Central Pivot – $92.96
R1 – $94.78
R2 – $97.83
R3 – $99.65
R4 – $101.46

S1 – $89.91
S2 – $88.09
S3 – $85.04
S4 – $81.98