Skip to main content

Market Overview

Brent Slips In Supply Glut

Share:
Brent Slips In Supply Glut

Brent crude oil continued to founder after prices fell 5.6 percent in July, the biggest monthly loss since April 2013.

The commodity traded at $106.04 at 6:50 GMT as views that the market is over-supplied outweighed geopolitical tension around the world.

Most analysts don’t see global demand living up to the current supply, which has weighed on the crude prices. The Wall Street Journal reported that although the current geopolitical conflicts around the world are not enough to provide a sizable lift for crude prices, analysts see Brent holding above $105 in the third quarter as supply interruptions from Libya continue.

Related Link: Brent On Track For Largest Monthly Loss In Over A Year

Libyan exports have ramped up in recent months as the country attempts to overcome recent protests that shut down the majority of its major oil ports for most of 2014. However, although the government has made agreements with the rebels holding most of the oil fields, reopening them has been a slow process.

Meanwhile Iraqi oil has been largely unaffected by the continued fighting in the OPEC nations. While extremist groups have overtaken several northern cities, most of the nation’s oil production comes from oil fields in the south.

Brent prices have also been under pressure from a stronger dollar as U.S. economic indicators show that the nation’s economy is back on track. The greenback could rise even further on Friday if U.S. non-farm payrolls data comes in as strong as expected. A rising dollar would be negative for Brent as the commodity is priced in dollars.

 

Related Articles (BNO)

View Comments and Join the Discussion!

Posted-In: Iraq Libya OilNews Commodities Global Pre-Market Outlook Markets Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com