Investing.com - Financial Markets Worldwide

Brent Steady Near $105 Ahead Of FED Minutes

ByBenzinga
AuthorBenzinga
Published 05/20/2013, 08:02 AM
Updated 05/14/2017, 06:45 AM

Brent crude oil traded steadily at $104.62 on Monday morning at 5:58 GMT as the commodity inched towards $105 on improving economic data and strong equity markets. However, a tepid demand outlook and market oversupply kept a lid on prices.

Last week, the International Energy Agency forecast both waning oil demand growth and increasing supply which put pressure on Brent prices. At the moment, the markets are well supplied; and with most of the world's largest consumers struggling to kick start their economies, crude demand has shown no signs of improvement.

Tension in the Middle East escalated over the weekend and reignited concerns about a supply interruption in one of the largest oil producing regions. CNBC reported that Lebanese Hezbollah militants fought alongside Syrian troops on Sunday and attacked a rebel-held town.

The event prompted Israel to threaten more attacks on Syria in an effort to keep the militia in check.

The Syrian civil war has been keeping Brent prices afloat as it rages on and creates tension in the oil rich region. Although Syria itself is not essential to the movement of oil, many are concerned that as the fighting escalates, the country's neighbors will be drawn into the conflict.

Moving forward, investors will be waiting for the release of minutes from the Federal Reserve meeting, due out on Wednesday. Most will be looking to the minutes for clues about the Fed's position on continuing its stimulus plans.

The release of the Fed minuets is expected to have a significant effect on markets as any hint of a policy change could lead to a spike in the dollar.

BY Laura Brodbeck

Latest comments

Loading next article…
Install Our App
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.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.