Oil headed for a weekly loss as investors weighed the crisis on Ukraine and the possibility that Iran’s nuclear deal could be revived.
West Texas Intermediate was steady near $92 a barrel in early Asian trading after losing 2% on Thursday. The US crude benchmark is in for a slight decline this week, the first weekly decline since mid-December.
The US intensified warnings of a possible Russian attack on Ukraine, reducing investor appetite for riskier assets and promoting shelters. Russian officials said no attack was taking place on its smaller neighbour, nor had any been planned.
Crude remains close to the highest level since 2014 after a blistering rally driven by rising demand, constrained supply and dwindling inventories. The market’s price structure points to strong demand for physical barrels, with traders willing to pay a hefty premium for near-term supply.
There is growing speculation that Iran’s nuclear deal could be revived, potentially paving the way for the lifting of US sanctions on the country’s crude exports. The issue is to be discussed at a major transatlantic security meeting to be held in Munich later this week.
This story has been published without modification in text from a wire agency feed. Only the title has been changed.
Never miss a story! Stay connected and informed with Mint.
download
Our App Now!!
,