Brent Likely To Post Another Weekly Loss

Brent crude oil looked poised to post a weekly loss on Friday as it continued to struggle under the weight of oversupply and an ailing global economy.

The commodity traded at $96.82 at 8:10 GMT as output from around the world continued to increase.

Libya’s oil exports have been on the rise after months of being suppressed due to protests and oilfield closures. The nation’s output reached above 900,000 barrels per day this week after beginning the week at just 800,000 barrels per day.

Though the nation is still struggling with conflict, its oil production looks to be nearing full capacity.

CNBC reported that Saudi Arabia is expecting to see an increase in global demand, and for that reason will maintain its current output for the remainder of 2014. The nation’s crude output declined 408,000 barrels per day in August.

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Meanwhile, markets have been largely unaffected by the growing conflict in the Middle East as the U.S. works to gather a coalition to fight Islamic militants in Iraq and Syria.

With the first set of air strikes already completed, several oilfields in eastern Syria have been destroyed. Now, Britain is holding a parliamentary vote to determine whether or not it will also join the fight.

However, markets have been unresponsive to developments in the Middle East, instead focusing on the waning economies of the world’s largest oil consumers.

Both China and Europe are under pressure as their central banks decide whether or not further economic stimulus is needed. Disappointing economic figures have led to weakening demand for oil, which in turn has further exacerbated the global supply glut.