Crude-oil futures were lower in Asian trading Monday suggesting the relief rally sparked by last week's fiscal-cliff deal in Washington may have run its course.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in February traded at $92.81 a barrel at 0634 GMT, down $0.28 in the Globex electronic session. February Brent crude on London's ICE Futures exchange fell $0.09 to $111.22 a barrel.
Nervous trading continued Monday as U.S. data showing a steady pace of job growth in December and a larger-than-expected decline in crude inventories failed to provide traders with any clear direction.
Nymex oil futures rose near to 3% last week after the U.S. government reached a deal avoiding the fiscal cliff. However, the rally quickly faded and crude prices fell more than 1% on Friday as minutes from the U.S. Federal Open Market Committee meeting suggested an end to bond purchases may come earlier than expected.
"The global economy continues to improve, providing a positive backdrop for oil prices and other risk assets. However, the 2013 oil market itself is in general not bullish," said analysts at PIRA Energy Group.
The consultancy predicts supply from countries outside the Organization of the Petroleum Exporting Countries will "significantly outpace demand in 2013, causing core OPEC countries to cut production to balance markets."
OPEC output fell below 31 million barrels a day last month for the first time since October 2011, according to a Dow Jones Newswires survey. The drop was a result of dwindling supplies from Iran--now at their lowest since 1988--while Iraq and Saudi Arabia reduced production amid slower world-wide demand.
"This underlines the current state of the global market which looks well balanced and this should, barring any geopolitical event, keep the price range bound in the near term," said Ole S. Hansen, head of commodity strategy at Saxo Bank.
Further upside for Brent crude is limited beyond $115 a barrel while support can be found at $109.40 a barrel and $107.50 a barrel, Mr. Hansen said.
Nymex reformulated gasoline blendstock for February--the benchmark gasoline contract--fell 43 points to $2.7600 a gallon, while February heating oil traded at $3.0194, 17 points higher.
ICE gasoil for January changed hands at $931.50 a metric ton--up $3.00 from Friday's settlement.
