Market Overview

Brent Recovers Modestly On Libyan Trouble

Brent Recovers Modestly On Libyan Trouble
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Brent crude oil saw a boost on Tuesday after slipping to a four month low on disappointing US economic data. The commodity traded at $106.33 at 5:45 GMT on Tuesday morning.

CNBC reported that most analysts are expecting US crude inventory data due out this week to show that the number one oil consuming nation's stockpiles grew for the sixth consecutive week, which would put pressure on crude prices.

Related: #PreMarket Primer: Tuesday, November 5: Fed Speakers Calm Taper Nerves

Poor US data also weighed on Brent prices after the Commerce Department announced that new orders of non-military capital goods fell 1.3 percent in September. The figure indicates business spending plans, and made investors nervous about the future of the US' recovery.

Oil found some support from the continuation of Libyan protests which have cut the nation's crude production to about 10 percent of the its normal capacity. Tension ratcheted up in the North African nation after leaders of an autonomy movement in the eastern part of the country declared their own regional government over the weekend.

US payrolls data will likely play a role in Brent prices when it is released on Friday as it will have an impact on the US dollar. Most are expecting the figures to have fallen as a result of October's US Federal Government shutdown. If the payrolls data is worse than expected, it could help alleviate worries that the US central bank will start tapering sooner than expected. However, figures that come in above expectations will add strength to the case for a Federal Reserve taper.

Posted-In: Commerce Departement Federal ReserveNews Commodities Forex Econ #s Pre-Market Outlook Markets Best of Benzinga

 

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