Oil’s pre-Christmas rally fizzled out as concerns about the increased supply from Iran and weaker demand in Europe weighed on prices. Reports that the Iran nuclear deal was on track after Tehran dispatched a shipment of more than 11 tonnes of low-enriched uranium to Russia, renewed the oil market’s focus on the supply glut. ICE February Brent was trading at $36.77 a barrel, down 3 per cent from the December 24 close, although it was up 0.3 percent on the session, enough to give respite to energy stocks on global markets. The international market is now down 36 percent from the start of the year. Nymex February West Texas Intermediate, the US market, also retreated 3 per cent to $36.94 a barrel. “Iran is gearing up to flood the market with 500,000 barrels a day within weeks of sanctions being lifted while the ceasefire in Libya may also add extra barrels,” said Ole Hansen, head of commodity strategy at Saxo Bank.