Oil futures dropped today over investor expectations that a forthcoming meeting in Geneva could possibly resolve the current crisis situation in Ukraine.
The US and EU are imposing further sanctions against Moscow as pro-Russia rebels defied an ultimatum by the Ukraine Government to leave occupied buildings in eastern cities.
On 17 April, the EU, US, Russia and Ukraine are set to hold a meeting in Geneva, in a diplomatic move to tackle the Ukrainian crisis. The outcome of this meeting will decide the extent of tightening sanctions.
Oil prices also decreased over news of resumed operations at Libya’s Zawiya oil port, as protesters vacated the entrance to the facility and the adjoining refinery reopened.
The Libyan Government is yet to take control at the eastern Zueitina oil port and the Hariga terminal after signing an agreement with a federalist rebel group a week ago.
In addition, traders are awaiting China’s GDP growth and the US oil inventory weekly data, due for release on Wednesday.
According to Reuters’ preliminary report, US crude stocks increased by 1.8 million barrels in the week ending 11 April.
Image: Geneva to host a four-way meeting on Ukraine crisis. Photo: courtesy of Rawich at FreeDigitalPhotos.net.