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Wednesday, 1 January 2014 00:00 - - {{hitsCtrl.values.hits}}
Fears of supply disruptions in the Middle East and Africa have offset concerns during the year about weak global demand, keeping Brent trading in a $ 22 range from $ 96.75 to $ 119.17 a barrel.
But the US benchmark looks set to end 8% higher for 2013, recouping a 7% loss the previous year and giving it gains in four of the past five years.
Brent crude rose 3 cents to $ 111.24 a barrel by 0731 GMT, after settling 97 cents lower in the previous session. US oil slipped 9 cents to $ 99.20 after ending $ 1.03 down. “I think we will see similar sideways trading in oil next year. Markets will be volatile, but prices will stay in range,” said Ric Spooner, chief market analyst at CMC Markets in Sydney. “Key factors for the market next year will be on the supply side and global economic growth.”
Spooner expects Brent to trade between $ 90 and $ 120 a barrel next year, and the US benchmark to hold an $ 85-$ 115 range. The spread between the two contracts may widen as much as it did this year, but should average about $ 5 a barrel for the year, he said.
The spread widened to as much as $ 23.45 a barrel this year and turned positive briefly, according to Reuters data. The trading range of the spread of $ 23.54 held near the highest level on record of $ 24.96 touched in 2011.
Growing unrest in key exporter Iraq, simmering tensions between Iran and the West over Tehran’s disputed nuclear program and outages in Libya towards the later part of the year, all helped to keep oil supported.
“There are quite a few factors worrying the market about the supply outlook for oil,” said a trader with a north Asian trading house. “These will put a floor on the prices.”
That offset worries of a weak demand outlook in industrialised nations and a slowdown in consumption in China, the world’s second-biggest oil consumer.
