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Brent Steady Near $112 On African Supply Woes

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Brent Steady Near $112 On African Supply Woes

Brent crude oil traded steadily below $112.00 on Monday after rising more than $1.00 on Friday. The commodity traded at $111.72 at 5:45 GMT on Monday as continuing strikes in Libya continued to pose a threat to supplies.

In Libya civil servants and tribesmen maintained control of most of Libya's largest oilfields and depressed the OPEC nation's output. The African nation has started to increase its fuel imports while its exports have fallen to just 110,000 barrels per day from its normal output of over 1 million barrels per day.

Related: #PreMarket Primer: Monday, December 23: A Quiet Week For Markets Around The World

The protesters are keeping the oilfields shut down until their demands for a greater share of Libya's oil income and more political rights are met.

Brent also found support from reports of escalating violence in South Sudan. According to Reuters, the fighting spread throughout the entire nation and oil workers were forced to take refuge when the conflict reached South Sudanese oilfields over the weekend. Many worry that the fighting will tip the oil rich nation into an all out civil war.

Oil prices were also buoyed by the promise of a busy holiday travel season this year. Most analysts are expecting to see record high travel this season which will probably draw on the world's tightening supply.

Moving forward commodity markets are not likely to make any huge moves this week as the Christmas Holiday will keep most market-moving data from being released. Investors will be watching for new developments in both Libya and South Sudan as conflict in both African nations will probably drive prices in the near term.

Posted-In: OPECNews Commodities Forex Global Pre-Market Outlook Markets Best of Benzinga

 

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