Oil headed for its biggest weekly loss since July as the prospect of an immediate confrontation between the U.S. and Iran abated, allaying fears of disruption to Middle East energy supplies.
Futures initially soared to an eight-month high above $65 a barrel in New York on Jan. 8 as Washington and Tehran faced-off after the killing of a top Iranian general, but all of this year’s gains dissipated as the two adversaries backed away from a full-scale conflict. Crude is now trading back below $60, down 5.9% for the week.
The aborted rally is another sign that global oil markets remain comfortably supplied, largely because of the U.S. shale-oil revolution. Nationwide crude inventories increased by 1.16 million barrels last week despite expectations for a decline, and gasoline stockpiles hit a 10-month high, government data showed on Jan. 8.
Crude Oil WTI Futures for February delivery slipped 17 cents, or 0.3%, to $59.39 a barrel on the New York Mercantile Exchange as of 10:50 a.m. London time. Brent futures for March settlement lost 13 cents to $65.24 a barrel on the ICE (NYSE:ICE) Futures Europe exchange.
Source : Bloomberg