Geopolitical tensions fueled international benchmark Brent crude oil prices to rise just under US$108 per barrel on Tuesday, as Russia, the world's second largest oil producer, continues to be embroiled in a crisis with Ukraine and the latest Malaysian Airlines tragedy.

Like Us on Facebook

The US benchmark West Texas intermediate for August delivery spiked by 54 cents at $105.13 at midday.

Oil prices may further be affected, depending on the results of European foreign ministers meeting Tuesday to discuss possible sanctions against Russia.

Russia has been accused of supplying weapons reportedly used in shooting down Malaysian Airlines Flight 17 in Ukraine last week.

Although Russia has denied any involvement, European leaders are preparing the sanctions.

Pro-Russian separatists, assuaging international protests, agreed to hand over the black boxes and bodies of the victims, resulting to a higher global market gains, boosting investors confidence.

Leaders from Britain, Germany and France threatened to impose more sanctions on Russia over the alleged involvement in the Malaysian Airlines crash.

Malaysian Airlines Flight MH17 was on its way to Kuala Lumpur to Amsterdam when it was shot down inside Ukrainian territory. On board were 298 passengers. 

The Israel-Hamas row is also shaking stability in oil-rich Middle East region.

Analysts are also expecting a decrease in US crude inventories. On Monday however US prices increased on the expected higher demand for crude oil in domestic refineries.

Natural gas dipped 4.7 cents at $3,802 per 1,000 cubic feet.  Diesel is up 1.24 cents or 0.4 % to $2,9182 a gallon.

TagsOil prices