25.03.201407:18:26UTC+00Oil dives on factory figures, sanctions peril

Oil prices surged slightly lower on Tuesday as dull factory data from China and the US evened the danger of sanctions versus Russia after annexing the Crimean Peninsula.

Benchmark oil to be delivered in May plunged 6 cents to $99.54 in electronic trading on the New York Mercantile Exchange. The contract climbed 14 cents to end at $99.60 on Monday. A dreary initial report on factory activity in China continued to count on sentiment. The HSBC-Markit purchasing managers' index dropped to an eight-month low in March, additional evidence of the extended slowdown that could result to lower demand for energy in the world's second best economy. A similar index for the US dived from a four-year peak.

Neutralizing those concerns was the possibility of sanctions versus oil and gas producer Russia. The US and other Group of Seven countries pledged to launch coordinated sanctions on major parts of the economy, which might include the energy industry, if Russian President Vladimir Putin jostles further into Ukraine.

Brent crude, which fix prices for international varieties of crude, tumbled 15 cents to $106.66.