© Bloomberg. A gas flame burns from a pipe close to an offshore oil platform in the Persian Gulf’s Salman Oil Field, operated by the National Iranian Offshore Oil Co., near Lavan island, Iran, on Thursday, Jan. 5. 2017. Nov. 5 is the day when sweeping U.S. sanctions on Iran’s energy and banking sectors go back into effect after Trump’s decision in May to walk away from the six-nation deal with Iran that suspended them. Photographer: Ali Mohammadi/Bloomberg
(Bloomberg) — Oil headed for a weekly loss as investors weighed the crisis over Ukraine and the possibility that Iran’s nuclear deal may be revived.
West Texas Intermediate was steady near $92 a barrel in early Asian trading after ending 2% lower on Thursday. The U.S. crude benchmark is on course for a modest drop this week, the first weekly fall since mid-December.
The U.S. ramped up warnings of a possible Russian attack on Ukraine, damping investor appetite for risk assets while boosting havens. Russian officials said that no invasion of its smaller neighbor was under way and none was planned.
Crude remains close to the highest level since 2014 after a blistering rally underpinned by roaring demand, constrained supply, and declining inventories. The market’s pricing structure points to robust demand for physical barrels, with traders willing to pay steep premiums for near-term supplies.
There’s mounting speculation that Iran’s nuclear deal may be revived, potentially paving the way for the removal of U.S. sanctions on the nation’s crude exports. The issue is set to be discussed at a key transatlantic security meeting that will held in Munich this weekend.
©2022 Bloomberg L.P.
Oil Rally Pauses as Traders Take Stock of Ukraine Crisis, Iran
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