Brent below $112 on supply concerns
Brent futures steadied below $112 per barrel this morning as the oil markets cooled after last week's rise with economic worries and concerns of oversupply offsetting fears of renewed unrest in the Middle East after the Algerian crisis.
The International Energy Agency, which advises industrial nations on energy policy, has said the market is tighter than expected but that it is too early to declare a return to the bull market.
Analysts seemed to agree more with an assessment by the Organization of the Petroleum Exporting Countries that supply is greater than demand.
"The IEA may have said the market is tighter, but the over-riding fundamental feeling in the market is that crude oil is over supplied in 2013," said Tony Nunan, an oil risk manager at Mitsubishi in Tokyo.
Front-month Brent slipped 30 cents to $111.59 per barrel by 05.01 GMT. US crude shed 34 cents to $95.22 per barrel after touching a four-month high last week.
Brent may trade in a range between $109-$112 per barrel this week, Mr Nunan said.