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Oil Falls After Ukrainian Elections, Copper Rises on China

May 26, 2014 at 23:34 by Vladimir Vyun

Crude oil declined after the elections in Ukraine have been held without incidents, giving hope that the political crisis in the Eastern European will be resolved. Billionaire Petro Poroshenko won the presidential elections over the weekend with 54 percent of voices, while Russian President Vladimir Putin said that he respects the choice of the Ukrainians and will work with the new government. This means that the conflict between Ukraine and Russia may ease, reducing chances of supply disruptions from Russia. Previously, oil prices rallied on fears that the political turmoil in Eastern Europe might lead to problems with Russian oil exports. Futures for delivery of WTI crude oil fell $0.03 (0.03 percent) to $104.32 per barrel as of 22:46 GMT on NYMEX today. Brent crude declined $0.22 (0.20 percent) to $110.32 per ICE.

Copper rallied on hopes that China’s economic growth will gain momentum yet again, leading to higher demand from the biggest consumer of the industrial metal. The Chinese government were talking about reforms that should reinvigorate economic expansion, and such talks were well-received by market participants. Meanwhile, copper inventories dropped to 283,645 tons last week, the lowest level since 2008, according to data from the major exchanges. July futures for delivery of copper went up $0.0225 (0.71 percent) to $3.1900 on COMEX today.

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