NYMEX-US crude around $100.80/bbl on renewed tension over Ukraine

SEOUL, April 8 Mon Apr 7, 2014 8:36pm EDT

SEOUL, April 8 (Reuters) - U.S. oil futures hovered around $100.80 a barrel on Tuesday in early Asian trade in the wake of renewed tensions over Ukraine, a major supply route for Russian gas to Europe, although the rise was capped by expectations of a U.S. crude oil stock build.

FUNDAMENTALS

* U.S. crude for May gained 36 cents to $100.80 a barrel as of 0015 GMT after it settled down 70 cents at $100.44.

* May Brent crude rose 14 cents to $105.96 a barrel after it settled down 90 cents at $105.82.

* Pro-Moscow protesters in eastern Ukraine seized arms in one city and declared a separatist republic in another, in moves Kiev described as part of a Russian-orchestrated plan to justify an invasion to dismember the country.

* Kiev said the overnight seizure of public buildings in three cities in eastern Ukraine's mainly Russian-speaking industrial heartland were a replay of events in Crimea, the Black Sea peninsula Moscow seized and annexed last month. The United States said on Monday sanctions are beginning to have an impact on Russia's economy.

* The rise in the oil prices was capped by hopes over easing tension between Iran and the west as the OPEC member said it hopes enough progress will be made this week to enable negotiators to start drafting by mid-May a final accord to settle a long-running dispute over its nuclear programme.

* The Islamic Republic and six world powers will hold a new round of talks in Vienna on Tuesday and Wednesday intended to reach a comprehensive agreement by July 20 on how to resolve a decade-old standoff.

* U.S. commercial crude oil stockpiles were expected to have risen last week, while inventories of refined oil products likely slipped, a preliminary Reuters poll of four analysts showed on Monday.

* The survey, taken ahead of weekly inventory reports from industry group the American Petroleum Institute (API) and from the U.S. Department of Energy's Energy Information Administration (EIA), showed crude stocks rising 1.9 million barrels on average for the week ending April 4.

MARKETS NEWS

* Wall Street stocks slumped on Monday, extending a broad retreat in global equities markets from a six-year high touched last week, while U.S. Treasuries' yields moved lower.

* The dollar lost 0.25 percent against a basket of six major currencies, and the euro rose 0.3 percent to $1.3742 , as comments by European Central Bank policymakers curbed expectations of more euro zone economic stimulus and boosted the euro against the greenback.

DATA/EVENTS

* The following data is expected on Tuesday:

DATA AHEAD (GMT)

0645 France Trade balance Feb

1130 U.S. NFIB business optimism March

1145 U.S. Weekly ICSC chain store sales (Reporting by Meeyoung Cho; Editing by Richard Pullin)