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UPDATE 4-Brent falls below $108 as technical factors cited

Alexander Winning
Friday, 1 Nov 2013 | 8:45 AM ET

* Brent breaks below $108, testing support levels

* Libyan outages, Iraq unrest underpin oil

LONDON, Nov 1 (Reuters) - Brent crude oil fell below $108 a barrel on Friday as traders shrugged off concerns over a lingering oil crisis in Libya and cited technical pressures.

Months of disruptions in OPEC member Libya have slashed oil exports and rekindled supply worries, pushing Brent to a high of $112 a barrel in October.

Brent crude for December delivery was down $1.24 cents lower at $107.60 at 1241 GMT after rising as high as $109.41 a barrel in early morning trade.

Brent had fallen $1.02 in the previous session, when traders booked profits, and was up less than $1 for the week so far.

U.S. oil for December was down 71 cents at $95.67, poised for a fourth straight week of declines, its longest losing streak since June 2012.

"Apart from a price surge on Syria worries in late August, Brent has been trading within a $2 range of $110 a barrel for three months now," said Harry Tchilinguirian, an oil analyst at BNP Paribas in London.

"It is supported at these levels by multiple supply-side risks, but today it is testing that support," he said.

The fall was driven by technical factors rather than supply and demand fundamentals, a broker said.

Tchilinguirian also said oil prices were pressured by the return of North Sea fields from maintenance.

Supplies of North Sea crude that underpin the Brent benchmark are set to reach a 2013 high in November, loading programmes show.

Brent's premium over U.S. crude oil had risen by more than $2 in the last five sessions and was near $12.

Brent is more susceptible to global supply constraints, while U.S. oil has been pressured by healthy inventory data from the U.S. Energy Information Administration (EIA).

While the EIA said global spare capacity rose in September and October, prolonged disruption in Libyan supplies and concern over unrest in Iraq mean the oil industry is relying on top exporter Saudi Arabia to make up for missing output.

Spare capacity averaged 1.8 million bpd in September and October, some 200,000 bpd higher than in the previous two months, the U.S. government agency said.