Pressure from a lackluster global economy and rising market supply kept Brent crude oil prices under $104 on Tuesday. The commodity traded at $103.32 at 8:00 GMT on Tuesday morning as investors eyed disappointing Chinese data.
The world's largest energy consumer released data showing that the Chinese economy was slowing this week, which added to already growing demand concerns. The data showed weak exports coupled with tepid domestic demand in May.
Also pressuring Brent prices was an unexpected rise in US shale oil reserves. According to CNBC, a US government report claimed that the boom in shale oil reserves will increase the total world crude resources by 11 percent. New drilling techniques have made shale deposits more accessible across the nation and the Energy Information Administration has calculated that shale oil reserves stand at approximately 58 billion barrels, a massive increase from just 32 billion in 2011.
On Monday, the North Sea Buzzard oil field returned to full production capacity after suffering interruptions last week. The field produces 200,000 barrels per day and its closure was keeping Brent prices propped up.
Despite threats from Sudan, South Sudan has maintained its oil supply and kept prices from rising on geopolitical concerns. Sudanese officials threatened to close its two export pipelines unless neighboring South Sudan withdrew support for rebels operating across the nations' border.
Moving forward, investors will be keeping a close eye on the tension in Africa, as a supply interruption in that region would impact on Asian buyers.
Also on investors' minds is an OPEC report that will detail the organization's monthly production, which some analysts believe has increased slightly.
BY Laura Brodbeck
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Weak Global Economy Keeps Brent Under $104
Published 06/11/2013, 09:16 AM
Updated 05/14/2017, 06:45 AM
Weak Global Economy Keeps Brent Under $104
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