Brent Oil Falls Below $105 on Libya Talks
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Brent fell below $105 a barrel for the first time since November as eastern Libyan rebels said they have an “accord in principle” to reopen oil ports. West Texas Intermediate’s discount to Brent slipped to a six-month low.
The front-month Brent contract, which has been more expensive than the second month on a closing basis since early November, erased most of its premium and moved into contango for part of the day. Libyan output slumped to 250,000 barrels a day last month from 1.4 million a year earlier because of unrest, according to a Bloomberg survey. The spread between Brent and WTI at settlement shrank to the narrowest level since Oct. 2.