* ECB announces rate cut, dollar initially gains vs euro
* Ukraine president-elect works on peace plan with Western
* Coming up: U.S. monthly jobs report, Friday 1230 GMT
(Updates prices to settlement)
By Anna Louie Sussman
NEW YORK, June 5 Brent crude oil futures rose
and U.S. crude oil pared losses on Thursday in choppy trading as
the euro and dollar reacted to the European Central Bank's (ECB)
interest rate cut and investors anticipated growing oil demand
The dollar initially strengthened against the euro after the
ECB cut interest rates to record lows and announced negative
interest rates on overnight deposits.
"I think it took the markets a while to process what the
implications are from these moves from the ECB, but the press
conference by [ECB President] Mario Draghi propped up the view
that these moves will make the economy more robust, and that
speaks to what energy demand will be," said John Kilduff, a
partner at Again Capital LLC in new York.
"It was a good economic data week for the continent," he
Brent bounced off a three-week low and U.S. crude from a
two-week low hit immediately after the ECB announcement.
Crude, priced in dollars, comes under pressure when the
greenback rises as it becomes less affordable to holders of
U.S. crude lost 16 cents to settle at $102.48, It
recovered after dropping to $101.60, its lowest since May 16.
Brent crude rose by 39 cents to settle at $108.79 a
barrel, after dropping to $107.77, its lowest since May 9.
The spread CL-LCO1=R between the two benchmarks closed at
$6.31, after narrowing to $5.61, its lowest point since April
Last month, political tensions pushed Brent above $111 but
prices have shed about 3 percent since then.
Ukraine's President-elect Petro Poroshenko said he may
discuss a plan to end violence in eastern Ukraine with Russian
leader Vladimir Putin.
Putin will hold face-to-face meetings with German Chancellor
Angela Merkel, French President Francois Hollande and British
Prime Minister David Cameron at a D-Day anniversary gathering in
France later this week.
The European Central Bank said on Thursday concerns have
risen about a possible escalation of tensions between Ukraine
and Russia which could affect the euro zone via trade, financial
links and oil prices.
"The geopolitical concerns are still out there," said Gene
McGillian, analyst at Tradition Energy in Stamford, Connecticut.
The U.S. Labor Department will release its monthly jobs
report, which is closely watched by financial markets around the
globe, on Friday at 8:30 a.m. (1230 GMT).
(Additional reporting by Lorenzo Ligato and Robert Gibbons in
New York, Simon Falish in London and Florence Tan in Singapore;
Editing by Dale Hudson, Jason Neely, Alden Bentley and Diane