Oil Heads for Second Weekly Loss on Europe; Mirae Sees Iran Risk

Oil headed for a second weekly decline in New York as speculation that Europe’s debt crisis threatens the global economy countered concern that violence in Saudi Arabia may destabilize the world’s biggest crude exporter.

Futures are down 1.3 percent this week, after sliding 1.6 percent in the prior seven days. Portugal and Hungary’s sovereign debt ratings were cut to junk, while Germany again ruled out joint euro-area borrowing and an expanded role for the European Central Bank in fighting the crisis. Four people died in clashes this week between Shiite Muslims and Saudi security forces in the oil-rich Eastern Province. Oil prices may jump this winter, according to Mirae Asset Securities Ltd.