Brent Ticks Up On Supply Worries and Improving Sentiment

Brent crude oil found support on Tuesday morning as worries about supply interruptions in the Middle East and Africa resurfaced. The commodity traded at $103.05 at 10:42 GMT on Tuesday morning after the Institute for Supply Management released data which indicated that US manufacturing activity increased in June and gave Brent a further boost. Anti government rallies in Egypt have many investors worrying about the stability of the entire region. Libyan oil output has diminished by a third as several oilfields have been shut down due to protests. Adding to concern was a fruitless meeting in South Sudan where leaders from Juba and Khartoum failed to reach an agreement to resolve the nation's conflict. Market sentiment has been mostly positive as investors reacted to good news from both the eurozone and the US on Tuesday. The

reported that data showed that factory activity in Europe seems to be on the mend and shrank less than in previous readings. The data is a promising indicator of recovery for the struggling eurozone and showed the possibility of expansion in the UK. In the US, the manufacturing and construction sectors both

as well. The news buoyed Brent prices as investors became hopeful about improving future demand prospects. Many are expecting to see a marked rise in demand in the US in the future as BP Plc is expected to start up a new crude distillation unit at a 413,000 barrels per day refinery in Whiting, Indiana.