Oil headed for the biggest weekly loss since February as the U.S. softened its crackdown on Iranian exports and American supplies surged, assuaging fears of an impending shortage.
Futures have lost 6 percent in New York this week. The U.S. has agreed to let eight countries — including Japan, India and South Korea — keep buying Iranian oil after it reimposes sanctions this weekend to prevent a spike in prices, a senior administration official said. Prices capped this week’s loss on signs of a possible trade agreement between the U.S. and China.
Oil’s autumn rally, which culminated in a four-year high last month, has unraveled as a rout in global equities fans concerns that fuel demand will suffer, and prices are now approaching a bear market. Read More