Brent Finds Support From Libya

Brent crude oil was helped by disruptions in Libya and pushed above $110 on Monday morning. The commodity traded at $110.14 at 5:25 GMT.

CNBC reported that more than 40 people were killed in southern Libya last week due to an explosion at an army depot. The blast was the latest in an ongoing series of events proving that the Libyan government is unable to gain control of protests which are crippling the nation.

Related: #PreMarket Primer: Monday, December, 2: Thousands Of Protesters Gather In Kiev

Oil exports in the North African nation have been cut by more than half this year as labor disputes drew protesters at several of Libya's largest oil fields. With several oil fields shut down and the protesters showing no signs of relenting, many see further disruption as the year comes to a close.

On the other hand, US inventory data has shown that the number one oil consumer's appetite for crude has been dwindling. Many traders are betting that winter heating will create more of a demand, but so far the nation's need has been down.

Also adding to the supply and demand imbalance are worries that Iranian crude will soon hit markets after years of sanctions kept nearly 1 million barrels per day from being exported. World powers and Iranian officials have agreed on a deal in which Iran will curb its nuclear program in exchange for looser sanctions.

Most assume sanctions on the nation's oil will not be eased for at least six months, however Iran has already started building relationships with western companies like Royal Dutch Shell in preparation.