Oil traded near $33 a barrel as the International Energy Agency said a global surplus will persist into next year and limit any chance of a short-term price rebound.
April futures were little changed in New York after the March contract expired Monday up 6.2 percent. While supply and demand will be aligned next year, large accumulated stockpiles will slow the pace of recovery in prices, the IEA said in its medium-term report. U.S. inventories probably expanded further from the highest level in more than eight decades, according to a Bloomberg survey before government data on Wednesday.
Oil is down about 10 percent this year on speculation an oversupply will persist amid the outlook for increased Iranian exports after the removal of sanctions and brimming U.S. stockpiles. Iran will add more output capacity than any other member of the Organization of Petroleum Exporting Countries over the next six years as it seeks to regain lost market share, the IEA said.
West Texas Intermediate for April delivery was at $33.31 a barrel on the New York Mercantile Exchange, down 8 cents, at 7:45 a.m. Hong Kong time. Total volume traded was about 56 percent below the 100-day average. The March contract expired up $1.84 at $31.48 a barrel, the highest for front-month prices since Feb. 4.
Brent for April settlement advanced $1.68, or 5.1 percent, to $34.69 a barrel on the London-based ICE Futures Europe exchange on Monday. The European benchmark crude ended the session at a premium of $1.30 to WTI for April.