Brent Oil Rallies Above $102 on Geopolitical Tensions

Brent crude oil rose on Monday and U.S. crude fell in light trading, as support from geopolitical tensions in Ukraine and Libya countered ample supplies and anticipated weak demand after a slew of disappointing economic data from the United States and Europe.

“Liquidity is down because of the holiday in London and the usual August vacation time, And while the market continues to see increasing geopolitical risk in Libya and the Russia, Ukraine situation, traders are more focused so far on concerns about slowing demand with the weak data from Europe and the United States,” said Phil Flynn, analyst at Price Futures Group in Chicago, referring to a fall in new home sales and cooling services sector activity in the United States, and weak business sentiment in Germany.

Brent crude rose 30 cents to hold above $102 a barrel, after hitting a 14-month low of $101.07 on Aug. 19. U.S. crude was down 30 cents to settle at $93.35 a barrel.

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