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Brent Settles Lower As Supply Worries Ease

ByBenzinga
AuthorBenzinga
Published 07/12/2013, 10:01 AM
Updated 05/14/2017, 06:45 AM
CL
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Brent crude oil settled a bit lower on Friday morning as investors took profits after the commodity jumped on falling US reserves. Brent traded at $1077.69 on Friday morning, poised to end the week on a high despite falling slightly.

Crude prices soared this week after US Federal Reserve Chairman Ben Bernanke revealed the bank's plans to continue with loose monetary policies at least until the end of the year. Bernanke's comments lifted commodities as investors tried to make use of the flood of dollars in the market while they still could.

Geopolitical risk has also been a massive driver for oil prices recently, as the conflict in Egypt threatened to cause problems at the Suez Canal, where much of the world's crude is shipped. After Egyptian President Mohamed Morsi was overthrown last week, his supporters have been gathering by the thousands to protest near the location he is believed to be held. Many of these supporters belong to the Muslim Brotherhood, a group that Morsi himself belonged to.

The BBC reported that the US and the UN have spoken out against the Egyptian military's decision to arrest several senior members of the Muslim Brotherhood. According to White House Spokesman Jay Carney, the arrests could further aggravate the country's unrest since they are targeted at a specific group.

Gains from concerns about supply have been capped by waning demand as many of the world's largest economies continue their struggle to recover. Moving forward investors will be watching China, the world's second largest oil consumer, as a string of weak data has led many to believe the nation's 2nd quarter GDP will have fallen.

BY Laura Brodbeck

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