Brent Gives Up Gains Amid Disagreement Over U.S. Budget


Brent crude fell for the second time in three days amid concern that deadlock in U.S. budget talks may threaten to curb economic growth and fuel demand.

The North Sea benchmark fell as much as 45 cents on the ICE Futures Europe Exchange, reversing earlier gains. European stocks declined for a third day on concern U.S. lawmakers won’t agree to a budget before more than $600 billion in tax increases and spending cuts known as the fiscal cliff start taking effect in January. The Stoxx Europe 600 (SXXP) fell 0.3 percent to 278.65. Indexes in the U.K., Germany and France dropped.

“We are down with equity markets,” Andrey Kryuchenkov, an analyst at VTB Capital in London said in an e-mailed response to questions. “All will look to the fiscal cliff debate in the U.S. congress before the year’s end.”

Brent for February settlement fell 29 cents, or 0.3 percent, to $107.89 a barrel on the London-based ICE Futures Europe exchange. The January contract settled $1.24 higher at $109.15 when it expired Dec. 14. The European grade was at a premium of $20.73 to WTI, down from $22.42 on Dec. 14.

West Texas Intermediate crude for January delivery was at $86.68 a barrel, down 5 cents, in electronic trading on the New York Mercantile Exchange at 9:31 a.m. London time. Front-month prices advanced 0.9 percent for the week ended Dec. 14.

Alfa Energy Group

Alfa Energy Group, an Edison Energy company, is an international energy, sustainability and technology consultant partner with 250 employees over 3 international locations. For over 25 years, Alfa has been servicing its clients’ needs through energy and water management, sustainability, and compliance consulting, and an intuitive ecosystem of user-driven energy, water, and carbon management software platforms. With coveted awards, an international industry-wide recognition, and clever simple solutions, today Alfa is partnering with clients to establish and deliver pivotal net zero strategies. Through smart energy management, the expertise and diligence of its people, transparent processes, and data management, Alfa continues to lead through its recognised gold standard of service delivery.