By Neena Rai and Eric Yep

LONDON--Oil futures traded flat in Europe on Friday after both Brent and Nymex crude lost more than 2% overnight.

Many of the risks that had been building in the market have receded for the time being. Conciliatory words from Russian President Vladimir Putin has eased some of the tension over Ukraine, while in Iraq, embattled Nouri al-Maliki has stepped down as prime minister, averting a deeper political crisis.

Libya, meanwhile, has reopened its largest export port, which will help with supplies, while disappointing second-quarter euro-zone economic growth means demand could now be weaker.

The scenario is keeping Brent in a contango structure--where the front-month contract is cheaper than future contracts--triggering demand for floating storage.

"While the focus has been on ample supplies, demand-side concerns have now also emerged in the wake of a number of disappointing economic data this week," Commerzbank said.

October Brent crude on London's ICE Futures exchange was flat at $102.16 a barrel. On the New York Mercantile Exchange, light, sweet crude futures for delivery in September were flat at $95.50 a barrel.

ICE gas oil for August changed hands at $862.50 a metric ton, down 0.5% from Thursday's settlement.

Write to Neena Rai at neena.rai@wsj.com and Eric Yep at eric.yep@wsj.com

(END) Dow Jones Newswires

August 15, 2014 06:39 ET (10:39 GMT)

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