Unrest In Egypt Continues To Support Brent Prices

After posting the largest weekly percentage gain since the beginning of July last week, Brent crude oil traded steadily above $110 as worries about supply interruptions continued. The commodity traded at $110.29 at 7:12 GMT on Monday morning as unrest in Egypt ratcheted up tension in the oil rich Middle East.

reported that at least 850 people have been reported dead after clashes between ousted President Mohamed Mursi's supporters and the new, army-supported government, which began last Wednesday. The Muslim Brotherhood, a group that supports Mursi, claims security forces killed dozens of Islamists; which in turn has sparked a series of protests that have ended violently. Tension in Libya added to supply worries as the nation's oil exports have been more than halved due to labor strikes that have shut down several large shipping terminals. Although the country's largest refinery has partially restarted, the nation's oil exports remain depressed. On the other hand, Brent prices are being pressured by speculation that the US Federal Reserve is planning to begin cutting back on its stimulus spending in September. The central bank will release minutes from its July policy meeting on Wednesday, which are expected to provide clues about the bank's tapering time line. US economic data will also drive oil prices this week as investors wait for US crude inventory data for a better idea of the number one oil consuming nation's appetite. After consumer sentiment and residential construction data disappointed last week, many began to worry that the nation's third quarter progress would come in below expectations.