Brent Could Reach New Highs This Week on US Economic Data

Brent crude oil began the week trading that $113.21 at 8:26 GMT on Monday morning. The commodity has found support from signs that the world's largest economies are recovering as well as rising tension within the Middle East. The US has been posting positive economic data in recent weeks and leading investors to believe that the world's largest oil consuming nation is on track for recovery. This week, investors will be waiting for the results of a US Federal Reserve policy meeting which will conclude on Wednesday. The Fed is expected to keep interest rates low until unemployment rates drop to 6.5 percent. US unemployment data is also due out later in the week, but many expect that figure to be unchanged at 7.8 percent. With two significant indicators of US economic health due out this week, some are expecting to see big changes in the oil market.

reported that some analysts expect the data could swing Brent prices into the $112 to $117 price range this week. Middle Eastern tension has also kept a ceiling under Brent prices. The ongoing Syrian civil war has taken on a new dimension as an Iranian government official was quoted as saying the country would consider any attack on Syria an attack on itself. The statement highlighted Iran's support for the current Syrian President and marked the Iran's most aggressive defense of its ally to date. In Egypt, protests again turned bloody as demonstrations along the Suez Canal resulted in dozens being killed over the past four days. President Mohamed Mursi has declared a state of emergency as his opponents continue to protest in an effort to overthrow him.