US said it has suspended defence cooperation with Russia and the UN Security Council began a meeting on the crisis. (Agencies)
US benchmark West Texas Intermediate (WTI) for April delivery, eased 13 cents to USD 104.79 in mid-morning trade on profit-taking as after hitting its highest levels this year in New York on Monday.
Brent North Sea crude for April climbed two cents to USD 111.22. Producing more than 10 million barrels a day in January, Russia vies with Saudi Arabia as the world's largest crude oil producer, and is the second-largest producer of natural gas.
More than 70 per cent of its gas and oil exports to Europe pass through Ukraine. "The Ukraine event is a new catalyst that propped up crude oil prices to form new highs," Phillip Futures said in a market commentary.
"When war erupts, Russia, one of the world's top oil producers, is likely to reduce oil exports due to higher domestic consumption," Futures added.
It warned that any possible disruption to oil infrastructure could hit production, leading to tighter supplies.
Research house Capital Economics noted that "Europe is heavily dependent on supplies of Russian energy".
US said it has suspended defence cooperation with Russia and the UN Security Council began a meeting on the crisis.