Brent Under Pressure From Chinese Data

Brent crude oil steadied at $106.50 at 5:31 GMT on Tuesday morning after slipping below $106 on Monday. The commodity has been under pressure as data from China indicated that the number two oil consuming nation's crude appetite waned in 2013.

CNBC reported that preliminary government data showed that Chinese implied oil demand grew just 1.6 percent in 2013. The figure fell short of the International Energy Agency's original prediction of a 3.8 percent rise and weighed on market sentiment.

See also: #PreMarket Primer for January 21: China's Central Bank Adds Record Amounts Of Cash To Market

Also weighing on Brent prices was news that Iran had begun to follow through on its end of a deal regarding the nation's nuclear capabilities. Iranian officials claim to have begun implementing the changes outlined in its nuclear deal and in turn the US, Britain, France, Germany, the EU, Russia and China are all expected to hold up their own end of the agreement by easing sanctions on Iran.

Sanctions keeping Iranian oil from the market have more than halved Iranian oil exports and kept nearly 1 million barrels per day from markets. As the sanctions are eased, Brent prices will be under pressure as the already over supplied market is flooded with more oil. Iran is expected to return to its 4 million barrel per day export capacity within six months of the sanctions being lifted.

Investors are also keeping a close eye on the situation in Libya where protesters have seized the nation's eastern oil export terminals and cut down the OPEC nation's exports. However, the Libyan government said it was planning to clear protesters from the area over the next few days and restart production.

Posted-In: International Energy Agency OPECNews Commodities Forex Global Pre-Market Outlook Markets Best of Benzinga

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