Brent steady, US crude up

Brent crude ended flat as improving supply and concerns about tepid demand for oil in Europe and China offset concerns about the Middle East conflicts, while US crude rose on supportive economic data from the United States.

Slowing economic activity in Europe and Asia has dampened demand for oil, while supply is on the rise. Libya’s output has reached 925,000 barrels per day (bpd), the highest since militias turned on each other after the overthrow of Muammar Gaddafi.

US crude was lifted by data showing the US economy grew at its fastest pace in two and half years in the second quarter. The report raised the estimate of gross domestic product (GDP) to show the economy expanded at a 4.6 percent annual rate, in line with Wall Street’s expectations.

Brent for November delivery settled unchanged at $97 a barrel, having swung from $96.46 to $97.50. US November crude rose $1.01 to settle at $93.54 a barrel.

Both crude contracts remained on pace for a third straight monthly loss. Brent’s looming 6 percent monthly drop would be its biggest monthly drop since April 2013.

Iran urged OPEC members to make joint efforts to keep oil prices from falling further, highlighting a split with other members such as Saudi Arabia who face less budget pressure even with the slide in crude prices.

OPEC’s November 27 meeting will likely see a debate on whether its current production target of 30 million bpd is appropriate for 2015. OPEC and other forecasters expect a further drop in global demand for OPEC crude.

Caution about conflict in the Middle East is expected to continue to limit any move lower by crude prices.