Brent falls below $102; near 14-month low
Singapore, August 25, 2014
Brent crude fell below $102 a barrel on Monday, drawing close to a 14-month low hit last week, as ample supply and a stronger US dollar continued to pressure oil markets.
Geopolitical tensions in Ukraine and Libya underpinned oil, but did little to boost prices in the absence of any supply disruption.
Brent crude, which has fallen for the past two weeks, extended losses to fall 34 cents to $101.95 a barrel by 0202 GMT.
"I see a lot of buying interest at around $101 for Brent," Yusuke Seta, a commodity sales manager at Newedge Japan said, adding that it has likely bottomed out.
"I don't think it'll break below $100 as some of the OPEC countries will not be able to survive at prices below $100," he said.
U.S. crude for October delivery was at $93.39 a barrel, down 26 cents after posting its fifth weekly loss last week. Trading on CME's Globex platform will open at 2100 Central Eastern Time after technical issues delayed the scheduled start.
Unrest in Libya, Iraq and Ukraine have the potential to cause oil prices to jump, but these price spikes cannot be sustained over months as "we still have plenty of oil", Seta said.
Libya loaded a second tanker at its largest oil port in Es Sider despite fierce fighting in the capital that destroyed the Tripoli airport during weekend.
Last week, the OPEC producer raised output to 612,000 barrels per day (bpd), the National Oil Company said, although this is still short of levels of about 1.4 million bpd pumped a year ago.
In Europe, Russian President Vladimir Putin will meet his Ukrainian counterpart Petro Poroshenko for the first time in months on Tuesday to try to reach a compromise on Ukraine.
The dollar index powered up near a 1-year peak as the Federal Reserve prepared to lay the groundwork for the central bank's first interest rate hike in nearly a decade.
Dollar-denonminated commodities such as oil become less affordable for holders of other currencies when the greenback strengthens. – Reuters