Crude Oil Ends Lower With Focus On Ukraine; Sheds About 3.6% For Week

(RTTNews) - U.S. crude oil ended sharply lower on Friday, mostly on profit taking with declining global equity markets even as U.S. crude oil stockpiles rose more than expected last week. Investors largely ignored a better-than-expected consumer sentiment reading, amid the escalating tensions between Ukraine and Russia.

Considering the May contract closing for the holiday-shortened week, oil prices shed about 3.6 percent for the week.

The situation in eastern Ukraine continued to remain tense, after five pro-Moscow rebels were killed on Thursday with Moscow threatening to intervene if Kiev continued its crackdown on pro-Russian activists. In a show of force, Russia ordered army drills near the border with Ukraine, renewing fears of its further intervention in the troubled region.

Meanwhile, U.S. Secretary of State John Kerry accused Moscow of playing an active role in destabilizing eastern Ukraine, and said Washington was getting ready for more sanctions on Russia.

In the meantime, Russia's central bank raised its main interest rate on Friday in a surprise move, citing substantial increase in inflation risks amid the escalating tensions over Ukraine that hurt the economy and attracted a rating downgrade.

Earlier today, rating agency Standard & Poor's cut Russia's credit rating to 'BBB-' from 'BBB' citing the risk of marked deterioration in external financing. S&P said the negative outlook reflects its view that Russia's ratings could be lowered over the next two years if there is an increase in the risks to the country's creditworthiness.

Light Sweet Crude Oil futures for June delivery, the most actively traded contract, plummeted $1.34 or 1.3 percent to close at $100.60 a barrel on the New York Mercantile Exchange Friday.

Crude prices for June delivery scaled a high of $102.05 a barrel intraday and a low of $100.48.

On Thursday, crude oil futures ended higher as concerns over the Ukraine situation outweighed the more-than-expected jump in U.S. crude stockpiles last week..

The dollar index, which tracks the U.S. unit against six major currencies, traded at 79.74 on Friday, down from its previous close of 79.77 late Thursday in North American trade. The dollar scaled a high of 79.80 intraday and a low of 79.66.

The euro traded higher against the dollar at $1.3839 on Friday, as compared to its previous close of $1.3832 late Thursday in North America. The euro scaled a high of $1.3850 intraday and a low of $1.3828.

In economic news from the U.S., a report from Thomson Reuters and the University of Michigan on Friday showed consumer sentiment index to have reached a nine-month high in April, improving more than previously estimated. A final reading on the consumer sentiment index for April came in at 84.1 compared to the preliminary estimate of 82.6. This reflects a notable increase from the final March reading of 80.0, and well above economist estimates of 83.0.

From Europe, U.K. retail sales unexpectedly rose for a second straight month in March, suggesting consumer spending is set to lead the economic recovery that is gaining momentum. Retail sales including automotive fuel rose 0.1 percent month-on-month, the Office for National Statistics said Friday. That followed a 1.3 percent gain in February, which was revised down from 1.7 percent. Economists had forecast a 0.4 percent decline for March.

The Bank of Russia in a statement said its Board of Directors have decided to raise the key rate to 7.5 percent per annum, due to higher inflation risks. Economists expected the bank to leave rates unchanged this month.