Brent crude steadied today, as yesterday’s gains were reined back by the prospect of additional supply from the non-Organization of the Petroleum Exporting Countries (OPEC) producers and demand growth concerns in China.
Brent crude was down 8 cents to $107.65 a barrel, while US crude dropped 7 cents to $104.84, reported Reuters.
On Thursday, the International Energy Agency (IEA) said the supply from the non-OPEC region is expected to grow at the fastest pace in decades next year.
The IEA also opined that more non-OPEC supply, including from the North American shale oil boom will be able to meet strong global demand in 2014, and take away the market share of OPEC countries.
On Wednesday, US data showed the biggest two-week decline on record in crude stockpiles, while refinery output reached a five-year high.
Prices were pulled down as weak demand for commodities in China continued, while the country’s finance minister said he anticipates growth to be at 7% in 2013.
Image: Data showed a two-week drop on record in US crude stockpiles. Photo: courtesy of freedigitalphotos.