UPDATE 7-Brent slips on high supply, low demand; spread narrows

Jeanine Prezioso
Monday, 9 Dec 2013 | 11:29 AM ET

* Brent futures curve flattens as European demand falters

* Brent's premium over U.S. oil at 2-week low

* Robust China trade data brightens outlook for global demand

(Adds analyst quote, details on supply, changes dateline to NEW YORK, updates prices)

NEW YORK, Dec 9 (Reuters) - Brent crude fell on Monday as well-supplied markets and limited demand from European refiners pushed prices lower, narrowing the gap between the global and U.S. oil benchmarks.

Brent futures fell by as much as $1.70 a barrel to a low of $109.91 before recovering somewhat to trade around $110.13 by 11:05 a.m. EST (1605 GMT), down sharply from Friday's close at $111.61.

Traders who bet on rising prices on Friday were likely selling contracts to unwind trades on Monday.

"Friday's little rally was probably unjustified and so profit taking ensued," said Addison Armstrong, senior director of market research at Tradition Energy in Stamford, Connecticut.

Brent fell close to the 100-day moving average of $109.70 while its premium over U.S. oil narrowed by more than $1.50 to $12.41, its smallest gap in two weeks.

U.S. crude was down 6 cents at $97.59, after ending Friday with its largest weekly percentage gain since July 5.

The Brent January futures contract premium over February narrowed to 19 cents from a high of 46 cents on Friday, mirroring weakness in physical over-the-counter trades at a time of weaker European refinery demand, analysts said.

Markets are also brimming with supply, with Saudi Arabia's production little changed in November from the previous month and OPEC producers Iraq and Iran making clear they have no interest in contributing to a collective cut in output should one be required next year.

Losses were somewhat limited by signs of accelerating global growth in China, the world's second largest oil consumer. Chinese trade figures on Sunday showed exports well above forecasts in November. Crude imports by China were up 19.1 percent from the previous month on a daily basis.

Weather-related oil production losses provided some price support. North Sea oil producers cut output and moved staff from some platforms as a major storm blasted toward mainland Europe in what meteorologists warned could be the worst weather to hit the continent in years.

Cold weather also dented oil and gas production in the United States and could further crimp output in top crude-producing states, such as Texas and North Dakota.

(Additional reporting by Christopher Johnson in London and Manash Goswami and Jessica Jaganathan in Singapore; Editing by Anthony Barker, Dale Hudson and Meredith Mazzilli)