Oil Price

Today’s Brent was steady at more than $109 a barrel as the focus of the main traders was to narrow its spread with US futures ahead of inventory data in the country.

The data is expected to show a decline in stockpiles of crude.

January Brent crude increased by seven cents to $109.45 a barrel, while US crude stayed near a six-week peak at $98.44, representing a decline of seven cents after a 1.2% rise the previous day, reported Reuters.

According to the US Energy Information Administration (EIA), oil output in the country increased during November and reached an average of eight million barrels a day.

American Petroleum Institute industry group data unveiled that the inventories of crude declined by 7.5 million barrels in the week to 6 December.

Decreasing OPEC output and tensions in Libya are expected to provide some support to oil markets.

Tehran and six world powers are negotiating talks over the implementation of a landmark nuclear deal, which is expected to ease sanctions on oil and increase supply in Iran.

In the next few months, two new pipelines are set to drain oil from cushing.

A TransCanada Corp pipeline with capacity for 700,000 barrels-per-day and a Royal Dutch Shell pipeline will send crude to Louisiana.

Image: Brent stays steady at more than $109. Photo courtesy of Victor Habbick / FreeDigitalPhotos.net.