Bargain Hunters Give Brent a Brief Boost

Brent crude oil made a modest recovery on Wednesday morning as investors looking for a bargain price bought the commodity at a low. The commodity crept briefly above $100 per barrel, but traded at $99.73 at 8:26 GMT on Wednesday. Brent fell to its lowest price since July on Tuesday and traded at $98, sparking interest for bargain hunters who are expecting to see the commodity rise on hopes that the US Federal Reserve will continue with its monetary stimulus program following recent poor American data. Data that showed US factory output fell in March alongside a consumer price slip for the first time in four months added to the Federal Reserve's reasons to maintain its quantitative easing program. Although the nation's housing data showed promise after housing starts proved to be at their highest level since 2008, it was not enough to turn the tides on Brent prices. The International Monetary Fund's decision to cut its projection for global economic growth in 2013 also pressured Brent prices and decreased its original estimate of 3.5 percent to 3.3 percent. The organization cited the steep spending cuts in the US and turmoil in Europe as the main reasons for the trim. According to Reuters, the IMF warned that although eurozone leaders have eliminated some of the financial risks and improved economic prospects, the region was still facing a tough situation following the botched Cyprus bailout and the inconclusive Italian elections. Despite Brent's recent fall, many are expecting to see the commodity rebound and it isn't expected to dip below $100 again in the third quarter. Most analysts expect data from the top consumers to improve steadily, which will ease concern about demand growth.