Oil Heading Lower as Ukraine Crisis Cools Down

Oil will drift down to its normal trading range around $100 a barrel if tensions over the Ukraine continue to decline, says Tom Reilly, options trader at SCS Commodities. Putin's conciliatory tone has caused crude to lose ground, but that could reverse if things heat up again, says Reilly. Speaking of heating up, Reilly also says that natural gas prices will also move lower now that the worst of winter seems to be behind us. He says European natural gas prices, however, will remain elevated.

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