Brent Near $110 on Positive Economic Data

Brent crude oil traded just below $110 on Friday morning after better than expected economic data eased future demand worries. The commodity traded at $109.48 at 9:06 GMT on Friday morning. This week several of the world's largest central banks held their policy meetings, all of which concluded without any major rate changes. Both the European Central bank and the Bank of England left their interest rates unchanged on Thursday, while the US Federal Reserve confirmed that its stimulus spending would continue unchanged. The Fed's decision to continue on with its quantitative easing program has had a large effect on commodities as investors have been anticipating a pullback which would boost the dollar and weigh on commodity prices. Reuters reported that US manufacturing data showed that the sector grew at its fastest pace in two years. That report coupled with a Chinese industrial index that surpassed expectations eased concerns about waning demand from the world's two largest oil consumers. In the Eurozone, factories ended two consecutive years of declining output which added to a growing list of economic indicators which signal the bloc is nearing the end of its recession. Supply disruptions have also kept Brent prices high as geopolitical tension in the Middle East and Africa has begun to create problems for oil producing nations. Data showed that OPEC output was down to 30.25 barrels per day in July from 30.38 million barrels per day in June. The reduced production is largely due to disruptions in Iraq, Libya and Nigeria.