Oil prices drop as Ukraine worries ease

Oil prices retreated Tuesday amid the speculation that tensions between Ukraine and Russia won't disrupt oil supplies. Russian President Vladimir Putin ordered forces engaged in military drills to return to their permanent bases, the Kremlin said Tuesday. Putin insisted that Russia had the right to protect its citizens in Ukraine but denied it had sent troops to Crimea. Investors viewed Putin's remarks as intended to ease tensions over Ukraine and reduced the threat to the world oil market. As the world's second largest oil exporter, Russia produced more than 10 million barrels crude a day in January. More than 70 percent of Russian crude and gas exports to Europe pass through Ukraine. Crude prices slipped on profit-taking after surging the day before owing to concerns over European energy supplies triggered by the Ukraine worries. No major economic data is due on Tuesday. The most closely- watched data for this week will come on Friday when U.S. Labor Department releases its nonfarm payrolls report for FebruaryLight, sweet crude for April delivery moved down 1.59 U.S. dollars to settle at 103.33 dollars a barrel on the New York Mercantile Exchange, while Brent crude for April delivery lost 1.9 dollars to close at 109.3 dollars a barrel.