Crude oil were seen trading lower on Wednesday, after climbing to a one-month high on Tuesday as the ongoing tension between Ukraine and Russia continues.
On Tuesday, crude prices rallied on tensions between Russia and Ukraine and Russia and the weaker dollar, while traders are expecting the resumption of Libyan crude exports to weigh on the commodity.
West Texas Intermediate for May delivery dropped 0.36% to $102.20 a barrel on the New York Mercantile Exchange at the time of writing. While the European benchmark Brent crude for May settlement lost 0.18% to $107.50 a barrel on the ICE Futures Europe exchange at the same time.
US Crude Supplies
Reports from the American Petroleum Institute showed that US stockpiles climbed by 7.08 million barrels last week.
Meanwhile, oil traders are expecting the Energy Information Administration to release a separate report which is expected to show a rise in crude oil inventories by 380.8 million barrels in the week ending April 4, according to analysts. Gasoline inventories are forecasted to have dropped by 1 million barrels.
Ukraine Ongoing Tension
On Monday, the US Secretary of State John Kerry warned Russia and said that additional sanctions aiming at Russia’s energy, banking and mining sectors will be imposed against the country if Russia intervenes further in Ukraine.
The Russian President Vladimir Putin is expected to meet with senior officials to discuss economic ties with Ukraine, while the European Commission is arranging a “support group” for Ukraine to handle assistance, according to an EU diplomatic source.
Libya
In Libya, holder of Africa’s largest reserves, the rebels are standing by a demand for a share of crude revenue before they surrender and reopen two export terminals, according to a mediator negotiating with the authorities.
Libya‘s output have dropped by more than 1 million barrels a day in the past year, making the country the smallest among OPEC’s 12 producers.
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