Brent Dips Below $111 on Chinese Data

Brent crude oil fell below $111 on Monday morning and traded at $110.58 at 7:38 GMT after Chinese data shook investor confidence in the nation's recovery. Chinese inflation was at a 10-month high in February, sparking concern that policy changes are in order. Weak factory output and consumer spending compounded fears that the nation's growth and recovery was off track. However,

reported that some analysts claim that the figures could be skewed from the Lunar New Year holidays, which made the data more difficult to interpret since it may have caused the weaker numbers. Brent found support from geopolitical concerns in the Middle East after Syrian rebels broke government lines and to hold positions in the centrally located city, Homs. The strategic location took on aerial bombing as rebels and government forces struggled for position. Although Syria on its own isn't a key player in the global oil market, the unrest in the nation has been threatening to spill over its borders and affect Syria's oil exporting neighbors. Also propping up Brent prices is concern about Iran's nuclear program. Since 2012, worries about Tehran's uranium enrichment program kept prices above $100 after the West slapped the nation with heavy sanctions in order to cut funding to the program. Recent talks between Iran and Western diplomats have resulted in positive sentiment and although no breakthrough was announced, further meetings were scheduled for March 18 in Istanbul and April 5-6 in Almaty. In exchange for Iran's promise to curb uranium enrichment, Western leaders have offered to lift some of the current sanctions.