Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Brent Slips Towards $109 On Demand Worries

Published 02/27/2014, 11:27 PM
Updated 05/14/2017, 06:45 AM

Brent crude oil slipped on Thursday morning as investors worried about falling demand. Supply interruption worries helped mitigate some of the losses and kept the commodity trading at $109.30 at 7:30 GMT on Thursday morning.

With the severely cold winter in the US coming to a close, many are expecting to see crude demand taper off. Additionally, poor economic data from China has many worried that the world's second largest oil consumer may not have such a large appetite for crude.

Reuters reported that China's factory activity is expected to have grown only slightly in February. The nation's manufacturing purchasing managers' index is forecast to fall to 50.1, down from 50.5 in January. If the prediction is correct, it will mark an eight month low for China's manufacturing PMI and would indicate that the nation's slowdown is set to continue.

However, tension over Ukraine's faltering economy has kept prices supported as many worry that the conflict could grow into a larger problem. Russian President Vladimir Putin has sent troops to perform military exercises in western Russia, some just miles from the border of Ukraine. The development prompted the US to issue a statement to Putin, warning him against military intervention.

Also supporting Brent prices is geopolitical tension in Libya where the nation's government is struggling to restore order to the country. Libyan oil output has been depressed for months now as protesters shut down the nation's largest export terminals in a bid for more rights as well as access to a portion of the nation's oil revenue.

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.