(Bloomberg) -- Oil headed for the first weekly loss since mid-December as a flurry of diplomacy increased the chance of an Iranian nuclear deal being revived, paving the way for a resumption in official flows from the nation.
While futures in New York edged higher on Friday to trade above $90 a barrel, they are still down more than 2% this week. Officials from the U.S. to Europe have indicated that sides are closing in on a nuclear pact after talks resumed in Vienna on Tuesday. A bigger-than-expected jump in U.S. inflation that stirred hawkish Federal Reserve comments added to the bearish sentiment.
Oil’s surge to the highest level since 2014 has been underpinned by stronger-than-expected demand and supply outages in some regions. While the rally has taken a breather, OPEC said in a monthly report Thursday that the recovery in global consumption could surpass its forecasts this year as the rebound in economic activity and travel gathers pace.
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The resumption of a nuclear accord with Iran could help alleviate some of the tightness in the global supply-demand balance. White House Press Secretary Jen Psaki said a deal that addresses concerns of all sides was in sight and EU foreign policy chief Josep Borrell said parties were “reaching the last steps.”
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