Oil steady as Ukraine-Russia tensions loom

Oil prices were steady on Monday in seesaw trading, after hitting their highest in more than seven years on fears that a possible invasion of Ukraine by Russia could trigger US and European sanctions that would disrupt exports from one of the world's top producers.

Brent crude was down 11 cents, or 0.1 per cent, at $94.33 a barrel by 0910 GMT, after earlier hitting a peak of $96.16, the highest since October 2014.

US West Texas Intermediate (WTI) crude rose 1 cent, or less than 0.1 per cent, to $93.11 a barrel, hovering near a session-high of $94.94, the loftiest since September 2014.

"Market participants are concerned that a conflict between Russia and the Ukraine could disrupt supply," said Giovanni Staunovo, commodity analyst at UBS.

He added that the oil market is very sensitive to any news of potential supply disruptions as oil inventories are low and spare capacity at oil producers is expected to fall further.

Comments from the United States about an imminent attack by Russia on Ukraine have rattled global financial markets.

Russia could invade Ukraine at any time and might create a surprise pretext for an attack, the United States said on Sunday.

"If ... troop movement happens, Brent crude won't have any trouble rallying above the $100 level," OANDA analyst Edward Moya said in a note.

"Oil prices will remain extremely volatile and sensitive to incremental updates regarding the Ukraine situation."