Brent has been buoyed recently as supply disruptions in Libya have cut the OPEC member's export capacity to less than half of its normal output. Labor riots have closed down several of Libya's largest oil fields and protestors have begun to put pressure on energy companies operating in the North African nation. On Sunday, Libya's chief intelligence chief was kidnapped, highlighting the government's slipping grasp on the situation.
Also supportive to crude prices was Janet Yellen's Senate hearing last week which ended with the Vice Chairwoman's approval to become the next Federal Reserve Chairman. Yellen has been perceived by markets as quite a dovish Fed chief, however she had been relatively quiet up until her hearing. Markets' perception proved to be right last week as Yellen defended the Fed's bond buying program and claimed that the US central bank still had more work to do.
Yellen's support of the Fed's stimulus caused investors to push back their taper estimates to March of 2014. With Yellen at the helm of the central bank, most are expecting to see the easy money policies continue well into 2014.
Gains were limited by reports that Iranian officials and US leaders were close to reaching a deal on Iran's nuclear program. CNBC reported that a senior US officials disclosed that an agreement was “quite possible” at the Geneva meetings set to begin on Wednesday.
An agreement would mean looser sanctions on Iranian oil, which have historically kept more than 1 million barrels per day of the nation's oil from the market.