Brent Set To End The Week On A Low

Brent crude oil is set to end its third consecutive week on a loss as supply worries eased and investors turned their attention to the demand side. The commodity traded at $108.55 as supply issues in the Middle East and Africa dissipated.

According to Reuters, Libya’s National Oil Corp reported that the nation’s El Sharara oil field has begun to ramp up production and boosted the country’s oil output to 350,000 barrels per day. The nation’s exports have been depressed to less than half of their normal capacity for months as protesters blockaded Libyan oilfields. Though the government has reached an agreement with the rebel groups, there is still some concern that unrest could flare up again.

In Iraq, the situation remains heated as Sunni insurgents continue to clash with government forces in the nation’s northern towns. The Iraqi parliament has moved forward a meeting to discuss forming a more inclusive government to July 13 as the fighting has shown no signs of stopping. However, the nation’s oil exports, mostly coming from the south of the country, have remained untouched.

With supply worries dying down, investors are turning to demand and looking to data from the world’s largest consumers for a better idea about future demand growth. China is in focus at the moment as markets wonder whether or not Beijing will stimulate the economy further. Though China’s oil imports increased by 10 percent so far this year, most believe the rise was due to stockpiling rather than increased demand. The nation is set to report second quarter GDP next week, which will provide a clearer picture of the state of China’s recovery.