Brent Above $110 On Improved Demand Outlook

Brent crude oil made its way above $110 following better than expected US data released on Tuesday. The commodity traded at $110.21 at 6:20 GMT on Wednesday morning as the data suggested an improvement in global demand growth.

Several important US economic releases came out on Tuesday, all of which painted a healthy picture of the number one oil consuming nation's economy. Reuters reported that durable goods orders increased by 0.8 percent in April and that March's gains were revised to 3.6 percent. In a separate report, the Conference Board said that an index of consumer attitudes increased from 81.7 in April to 83 in May. The improved sentiment was attributed to progress in the labor market, and will likely contribute to higher consumer spending in the second quarter.

The data helped quash worries about the nation's lackluster first quarter and gave markets reason to believe that the US economy was back on track.

The ongoing conflicts in both Ukraine and Libya also supported Brent prices as markets kept a close eye on the situation in anticipation of a supply disruption.

In Ukraine, the government ordered a military air strike in the nation's eastern region after pro-Russian separatists took over a regional airport. More than 50 rebels were killed by the paratroopers, proving that the nation's newly elected president, Petro Poroshenko, intends to make good on his promise to crush the revolution swiftly.

Moving forward investors will be waiting for US stockpile data, due out later in the day. Analysts are expecting to see that crude stocks increased by 700,000 barrels in the week that ends on May 23^rd. The American Petroleum Institute will release its report on Wednesday and the Energy Information Administration will follow up with its own version of the data on Thursday.