Oil prices rise on Ukraine fears

Oil prices moved higher Thursday as heightened tensions in Ukraine overcame concerns about record US commercial crude inventories.

New York's West Texas Intermediate for delivery in June, settled 50 cents higher at $101.94 a barrel.

Brent North Sea crude for June jumped $1.22 to close at $110.33 a barrel in London.

The market reacted to tensions between Russia and Ukraine, "where we have seen violence ratcheted up," said Andy Lipow of Lipow Oil Associates.

The violence "has the market concerned about the likelihood that we might see some supply disruption of energy products, one way or another."

Russia ordered new military exercises on the border of Ukraine Thursday and warned of "consequences" after Kiev launched a deadly assault against pro-Kremlin rebels occupying the flashpoint town of Slavyansk, in an escalation of the crisis.

But Ukraine's president vowed to see through the military operation, telling Russia to "stop interfering" in the former Soviet republic, and declaring that Kiev would not yield to "the terrorist threat".

The oil market rebounded from Wednesday's sharp sell-off on US data that showed crude inventories hit an all-time high last week.