Brent Slips Below $111

Brent crude oil slipped below $111 on Friday morning to trade at $110.66 at 5:15 GMT. The commodity was under pressure from US inventory data which showed an unexpected rise, however losses were mitigated by rising tension in OPEC producer, Libya. According to CNBC, the Energy Information Administration reported that US crude oil stockpiles climbed by 3 million barrels, up to 391 million barrels. The figure was the highest US crude stocks have been since 1982, when records began. The rising inventories confirmed that crude supplies are outpacing demand. Brent prices found some support from news that social tension in Libya was ratcheted up after the country's Prime Minister Ali Zeidan announced on Wednesday that public salaries would not be paid. Labor struggles in the North African nation have more than halved its crude supplies as protesters shut down several of the country's largest export terminals. Zeidan said the Libyan government might have to find a loan if the oil ports were not reopened soon. However, in the back of investors minds is the West's recent deal with Iran which could mean the re-entry of Iranian oil into markets in the next six months. Officials reached a deal last weekend under which Iran agreed to make its nuclear development program more transparent by opening its plants to international inspectors. UN inspectors are set to visit Iran's Arak heavy-water production plant on December 8th, the first sign that Tehran is prepared to follow through with its commitment in order to eventually have the sanctions on its oil lifted.