Brent Dips Toward US$107 on Back of Ample Supplies
Oil prices slipped for a second session on Tuesday, with Brent edging down toward $107 a barrel, as ample supply offset geopolitical tensions in the Middle East, Africa and Europe. Despite conflicts in Ukraine, Iraq and Libya, global oil production has exceeded demand, leaving pockets of excess supply in Africa and Europe. "Barring new supply outages, we see global supply capacity rising by 1.8 million barrels per day (bpd) in 2014 - the fastest growth in a decade," Morgan Stanley analysts led by Adam Longson said in a note, versus its forecast of a 1.1 million bpd demand growth this year.
Brent Dips Below $108, Market Well-Supplied
China July factory sector grows at fastest pace in 18 months; weak demand from European refiners creating contango. Brent crude dipped below $108 a barrel on Thursday as unseasonably weak demand from European refiners and plentiful supplies offset strong Chinese factory data. Brent for September delivery was down 30 cents at $107.73 a barrel by 1117 GMT, after closing 70 cents higher on Wednesday. U.S. crude was down 28 cents at $102.84 a barrel, after gaining 73 cents in the previous session. "Oil is moving in a small range.
Update: Brent Dips on Weak Demand Outlook
Brent oil futures dipped towards $107 a barrel on Friday following a weaker outlook for 2014 global demand growth from the International Energy Agency and due to expectations that more Libyan crude will reach the market next week. Brent crude was down 8 cents at $107.38 a barrel by 1338 GMT after settling 52 cents lower on Thursday. The contract was on track to end the week about 0.5 percent higher, recouping part of the previous week's losses. U.S. oil was up 3 cents at $103.43 a barrel and was set to end the week about 2 percent higher. The U.S. oil complex was lifted by a sharp, unexpected fall in U.S.
