The ongoing rumours surrounding Russian troop movements away from the Ukrainian border have eased fears of any escalation in tensions. This was also coupled with the overnight news that Chinese manufacturing figures kept up with expectations. Today's press conference by David Cameron also failed to raise the market’s blood pressure, and the afternoon session has eased the Brent crude price lower.
The market has also been digesting increasing reports that Libya and the rebels forces are close to forming an agreement that would allow a number of their ports to start shipping out crude again. Although this would only be a short-term measure it would help ease supply.
The last five trading days have seen Brent briefly pop above the $108 level where both the 50- and 200-day moving averages currently are; however this momentum has been short-lived. We would still expect support to kick in just above $106.