Brent Rises After Unsuccessful Talks in Iran
February 19, 2013 2:07 AM EST
Brent crude oil began the week trading steadily below $118 as geopolitical tension and an overall positive sentiment regarding the global economy supported prices. The commodity traded at $117.89 at 8:45 GMT on Monday morning.
Data last week put pressure on Brent prices after eurozone nations posted large drops in GDP, indicating the region still had a long way to go toward recovery.
The US also released worrying figures that showed industrial production had fallen and that the nation's manufacturing sector was stalling. However, most believe the US economy is improving, and that small setbacks like this one are likely to be temporary.
Oil supply seemed to be the largest factor affecting Brent prices at the start of the week as tension in the Middle East continued to underpin prices.
After unsuccessful talks between the West and Iran left the dispute over Tehran's nuclear program unresolved, sanctions designed to cut funding to the program by limiting oil supply remained in place. According to CNBC, negotiations are expected to resume at another round of talks set for February 26th.
A decrease in Saudi Arabian crude output also kept Brent prices elevated this week. OPEC supply surveys showed that the nation cut back its production more than expected, and exports fell for the third month in a row in December.
Moving forward, crude demand is expected to increase as optimism within some of the top oil consuming nations pushes prices up. Investors will be watching for US housing data, due out later this week, to find more evidence of recovery.
The outlook in Japan is also improving, after no direct criticism was offered at the G20 summit in regard to the yen's recent weakening. However, nuclear testing in North Korea is threatening to disrupt Asian markets as tension rises over the country's nuclear capabilities.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Copyright Benzinga. All rights reserved.
Most Popular Slideshows
- Prince Harry & Camilla Thurlow Getting Serious, St. Tropez Holiday Before The Prince’s 30th Birthday [PHOTOS]
- 2014 US Open: Hottest Male Tennis Players To Watch [PHOTOS]
- What Happens When You Give Up Sex For 12 Months? – Dialogue With Peter Lynagh – Exclusive
- 2014 US Open: Hottest Female Tennis Athletes [PHOTOS]
Join the Conversation
- 5.5-Inch iPhone 6 is iPhone Air on Sept 19 Release Date: 5 Things to Consider Before Buying
- Nexus 6 Release Date Update: Moto X+1 Look Leaked, Nexus X or Shamu Moved to Demo Phase
- HTC One M8 for Windows Vs. Nokia Lumia Icon, The Battle Of Windows Phones
- Leaker of Actresses Nude Photos Accepting PayPal Donations in Exchange For Posting Alleged Sex Video of Jennifer Lawrence, Has Naked Pictures of 100 Hollywood A-Listers
- ISIS Will Target the U.S. Power Grid, Former CIA Says; Could Tap Other Fellow Extremist Groups to Do the Job
- Jennifer Lawrence's Nude Photos Leaked on Find My iPhone, Apple 'Outraged' But Says Systems 'Not Breached'
- Russia Massacres Ukrainian Volunteer Battalions—Surviving Members Alleged