Oil retreats below $90 a barrel with bumper rally starting to ease out

Oil headed for the first weekly loss in two months as investors weighed the crisis over Ukraine and Iran's nuclear deal

Oil headed for the first weekly loss in two months as investors weighed the crisis over Ukraine and the possibility that Iran’s nuclear deal may be revived.

West Texas Intermediate (WTI) fell below $90 a barrel after losing as much as 3 per cent on Friday. 

WTI crude futures shed $0.43, or 0.47 per cent, to $91.33 a barrel after sliding 2 per cent on Thursday. Brent crude futures fell $0.13, or 0.14 per cent, to $92.84 a barrel by 9.45 IST.

There have been signs that the market’s recent rally is starting to cool in recent days — albeit from exceptionally high levels. The North Sea market has seen differentials for physical barrels ease, while refining margins have come under pressure.

Mounting speculation that Iran’s nuclear deal may be revived, potentially paving the way for the removal of US sanctions on the nation’s crude exports, is easing off some of the bullish signals. The oil market’s structure weakened markedly on Friday, and one oil-focused exchange traded fund saw its biggest withdrawal since July 2020.