- POSTED: 12 Oct 2013 04:39
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World oil prices retreated on Friday after an International Energy Agency report highlighted the surge in production from North America and some other countries.
NEW YORK CITY: World oil prices retreated on Friday after an International Energy Agency (IEA) report highlighted the surge in production from North America and some other countries.
Analysts also cited continued unease about the economic effects of the US budget impasse.
US benchmark West Texas Intermediate for November delivery fell 99 cents to $102.02 a barrel on the New York Mercantile Exchange.
European benchmark Brent oil for November delivery declined 52 cents to $111.28 a barrel.
Analysts pointed to a report by the IEA, which represents energy-consuming countries, that said third-quarter growth in output from nations outside the Organization of the Petroleum Exporting Countries (OPEC) rose by 1.7 million barrels a day compared with last year.
This was "the steepest annual growth for any quarter in over 10-years," the IEA said.
Besides the United States and Canada, the additional supply comes from Kazakhstan and South Sudan.
The IEA warned that the rise in non-OPEC oil would not necessarily mean lower prices because of instability in some leading OPEC countries, including Iraq and Libya.
Still, Matt Smith, analyst at Schneider Electric, said the IEA report "once again underscores the theme of booming non-OPEC supply for next year."
Analysts also continued to watch Washington as the partial government shutdown looked like it could extend into a third week.
The oil market joined equity markets Thursday in rallying higher as progress on a deal to avoid a US debt default seemed at hand. On Friday, equity markets continued to rise, but the oil market sold off.
Sucden analyst Kash Kamal attributed the decline in oil to the sense that momentum had begun to "fade" in the negotiations between President Obama and congressional Republicans.
"We continue to grind lower under worries that if the government shutdown doesn't end and if the debt ceiling isn't raised, we could have a severe economic pullback," said Gene McGillian, broker and analyst at Tradition Energy.