Oil prices mixed as Ukraine fears recede

SINGAPORE, Mar 5 (AFP): Oil prices were mixed in Asia Wednesday as fears of an immediate armed conflict in Ukraine receded, but analysts said the presence of Russian-backed troops in the Crimean peninsula continue to support prices.

New York's main contract, West Texas Intermediate (WTI) for April delivery, rose 10 cents to $103.43 in afternoon trade, while Brent North Sea crude for April eased 14 cents to $109.16.

WTI fell $1.59 in New York Tuesday after Russian President Vladimir Putin declared in a news conference there was currently "no need" to send troops into Ukraine.

European benchmark Brent tumbled $1.90 in London.

Breaking a week of silence after the ousting of Ukraine president Viktor Yanukovych, Putin denied that he had sent Russian troops to the Crimean peninsula and said the uniformed men present there were "local forces of self-defence".

Western leaders as well Ukraine's interim government however insist that the troops are backed by the Kremlin.

"With Russia stationing their troops in Crimea... these should keep tensions high up in Ukraine and should give crude oil some support," Tan Chee Tat, investment analyst at Singapore-based Phillip Futures, told AFP.

Tan said prices also gained support after Russia carried out a successful test launch of an "advanced" intercontinental ballistic missile Tuesday. A US defence official said the US was informed of the test earlier this week.

The standoff between Moscow and the West over Ukraine has been the main focus of oil investors this week as more than 70 per cent of Russia's oil exports to Europe pass through the ex-Soviet state.