Brent crude-oil prices fell in London Wednesday after the latest International Energy Agency monthly report confirmed a well-supplied market.
The IEA, the top energy watchdog, said total non-OPEC production looks set for its highest annual percentage gain since 2002. On Tuesday the Organization of the Petroleum Exporting Countries and the U.S. Energy Information Administration both said they see the prospect of an amply supplied market, at least in the short term.
Brent crude for January delivery fell 27 cents to $109.09 a barrel on ICE Futures Europe. U.S. crude-oil futures were unchanged on the day at $98.51 a barrel on the New York Mercantile Exchange.
Prices of the two benchmark contracts have converged at pace since the end of November, when the difference--known as the spread--was above $19. On Tuesday the possibility of Libyan exports resuming sent Brent sharply lower for a time, although the contract ended the day fairly flat, while U.S. prices gained more than a dollar on expectations of another big decline in crude-oil stockpiles.
The American Petroleum Institute, an industry group, released data showing a 7.5 million barrel draw on stocks last week. Later Wednesday the U.S. EIA will release its more closely-watched numbers.
Recently the ICE's gasoil contract for December delivery was up $1.75 at $929.75 a metric ton, while Nymex gasoline for January delivery was down 151 points at $2.6678 a gallon.
