Brent Elevated On Syrian Chemical Weapons Accusation
Rising tension between the US and Syria kept Brent crude oil supported on Tuesday as suspicion about the Syrian government's use of chemical weapons continued.
The commodity traded at $110.98 at 7:02 GMT on Tuesday morning after the US met with allies in Jordan for what some are speculating was a council of war.
Syrian President Bashar al-Assad has denied the use of chemical weapons, claiming instead that rebels were behind the attacks. Syrian officials allowed a UN inspector to investigate the matter, but the US claims that Syria's offer came too late for it to be credible.
Supply disruptions in Libya continued to keep the nation's exports operating at nearly half of their normal capacity. One of Libya's ports, Marsa al-Brega, has reopened, but Es Sider, the country's largest port remained closed. CNBC reported that the country has issued a warning that it will attack any tankers that attempt to illegally export oil. Last week, Libyan forces shot at a taker that was close to Es Sider.
Weak US durable goods and new homes data helped put concern about the US Federal Reserve taper to the side. Most were betting on a September start date for the central bank to begin cutting back on its $85 billion per month stimulus spending, but the most recent data suggests that the bank could hold out until later in 2013.
Although weak economic data from the number one oil consuming nation doesn't bode well for demand prospects, commodity markets were supported by the weaker figures as they suggest that the Fed taper will be postponed.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.