Brent Climbs Toward $107

Brent crude oil made its way back towards $107 on Tuesday morning after falling $1.19 on Monday. The commodity traded at $106.88 at 6:00 GMT, but is expected to trade in a narrow range as investors continue to worry about global economic growth and oversupply.

Recent turmoil for emerging markets has been a concern for commodity markets as investors worry that the issue could become a full blown market crisis of confidence. The problems started when local factors put pressure on several emerging market currencies, but grew exponentially when weak Chinese data and the possibility that the US Federal Reserve will taper further were thrown in to the mix.

reported that a poll showed that most analysts are expecting to see upcoming Chinese data show that the nation's factory activity fell to a six month low. If the prediction is correct, it will add to a growing list of economic reports which indicate that the world's second largest oil consumer continued to slow down into 2014. The US Federal Reserve policy meeting is also bearing down on Brent prices since most expect that the central bank will elect to taper its asset buying program by $10 billion. Although the bank's first $10 billion taper last year didn't over turn markets as originally expected, further tapering will likely bring commodity prices lower as the Fed's easy money policies have long supported them. Rising supply has also been a concern as the resolution of problems in both Libya and Iraq would result in increased exports. However, OPEC Secretary General Abdullah al-Badri told reporters that the group would accommodate newly introduced supply when the time comes.