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Brent crude prices increased to more than $106 a barrel as investors started fresh positions after the previous session’s steep fall of more than $3 and settling at its lowest point since early July.

Brent crude increased by 52 cents to $106.43 a barrel, while US crude grew by 24 cents at $94.85, reported Reuters.

Prices increased after the Institute for Supply Management data revealed that US manufacturing grew more rapidly than expected, which prompted economists to believe the Federal Reserve will move sooner, rather than later, to slow support for the recovery.

The PMI registered 56.4%, an increase of 0.2% from September’s reading of 56.2%.

The PMI has increased progressively each month since June, with October’s reading reflecting the highest PMI in 2013.

This data is expected to reduce the supply of dollars in the market, increasing the currency and making demand for dollar assets such as oil more expensive for holders of other currencies. Today the dollar index was holding firm at 80.691, which had moved to a seven-week high on Friday.

Brent value fell badly at the ending session of Friday as investors focused more on Libya’s oil supply outage, instead of focusing on a strong dollar and a supply overhang that set an overall bearish market tone.

Developments in OPEC-producer Libya left investors worried about supplies, keeping oil supported.

The prices are speculated to grow as Libya’s leaders of an autonomy movement declared a regional government on Sunday, to make the central government weak.


Image: Crude’s value increased as the dollar index held firm. Photo courtesy of freedigitalphotos.net.

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