After falling from $106 per barrel in just under a week, Brent crude oil made a modest comeback on Friday morning. The commodity traded at 99.58 as it made its way toward the $100 mark at 9:40 GMT on Friday.
According to CNBC, the recovery is shaky as many analysts believe the market is simply stabilizing after the massive sell off. Though bargain hunters have been buying the commodity on hopes of improvement in the weeks to come, data from around the globe supports concern about the commodity's demand growth in the future.
Three of the largest oil consumers, Europe, China and the US have all released dismal economic data recently, causing concern about energy needs in the future. The three most important global energy agencies all decreased their global demand growth outlook projections to reflect weaker than expected economic recoveries in all three regions.
Brent has also faced pressure from increased oil production in the US. The country's output is expected to exceed the amount of oil it imports later this year for the first time since 1995.
As Brent nears the $100 mark, investors will be watching the Organization of Petroleum Exporting Countries to see if its members will call an emergency meeting ahead of the regularly scheduled May 31 summit. The steep price drop has created uncertainty for some of the organization's members whose budget break even point is $100.
Venezuelan Oil Minister Rafael Ramirez made statements on Thursday indicating that OPEC members are considering holding an emergency meeting if the commodity drops further or remains below $100. If the organization tightens up supply, the commodity's price could recover.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Copyright Benzinga. All rights reserved.