Brent Below $102 Ahead Of U.S. Data

Brent crude oil remained near a 14-month low on Tuesday with geopolitical tension easing and investors worried about a supply glut.

The commodity traded at $101.82 at 7:00 GMT as markets waited for U.S. oil inventory data due out later in the day.

A Reuters survey showed that most analysts see Tuesday's American Petroleum Institute report indicating that U.S. crude stocks declined last week, suggesting that the nation’s oil demand is still strong.

The analysts see crude stocks down by 1.5 million barrels, distillate stockpiles down 200,000 barrels and gasoline inventories down 1.7 million barrels.

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However, weak demand from Europe and Asia is continuing to depress the demand for crude on a global level. Some see Brent prices falling as low as $100 if geopolitical tension continues to ease and demand remains sluggish.

The commodity will likely remain around the $100 mark, as most OPEC nations can’t meet their budgets at a lower price.

The threat of a supply interruption in Iraq lessened on Monday as Iraqi forces continued the push to recapture key parts of the North with help from U.S. air support. After a series of air strikes, Islamist militants were pushed out of the Mosul Dam and it was returned to Kurdish power.

Meanwhile the risks in Ukraine also diminished as Ukrainian forces made some ground against pro-Russian separatists in the eastern part of the nation.

However, the forward momentum came at a price as dozens of civilians were killed on Monday when rocket fire hit buses carrying them away from the fighting.