Brent Up On Hopes of an Improving Global Economy

Brent crude oil began the week trading firmly above $108 as investors hoped a global demand resurgence was finally around the corner. The commodity traded at $108.43 at 6:44 GMT on Monday morning. The Group of 20 nations met over the weekend to discuss how to move forward with a global economic recovery. The meeting centered largely around the group's initiative to crackdown on tax evasion. According to Financial Times, G20 leaders have implemented new rules which will make tax systems more transparent. In doing this, exchange of information between countries will be simpler and more streamlined, making it easier to catch tax evaders. At the summit, leaders also agreed that growth and job creation were the most important factors in recovery. The meeting ended with a pledge to continue working on growing the economy by focusing on growth rather than austerity. The news added momentum to growing hope of a recovery in the consumption of commodities. The Chinese government has decided to lower financial costs to companies by releasing controls on bank lending rates. The policy changes are expected to help stimulate the nation's economy by offering cheaper credit. Brent took support from the news as many are hoping to see increased demand from the number two oil consuming nation. Geopolitical tension also added to Brent's strength this week as investors kept a wary eye on tension in the Middle East and Africa. The US is expected to resume talks with Iran over the nation's nuclear program in an attempt to resolve the issue diplomatically. If talks are unsuccessful, many worry that the tension could boil over into a larger conflict.