Oil declines slightly

Crude oil prices were up again early in the day due to new threats from Iran and data showing demand growing in China.  However, prices slid after US President George W. Bush announced the suspension of oil deliveries to the Strategic Reserve in an effort to halt the rise in gasoline prices.  Mr. Bush also asked the Environmental Protection Agency to relax pollution rules in order to ease gasoline shortages.

West Texas Intermediate crude for June delivery was up as high as $74.00 per barrel early in the session, but later was down $1 from Monday’s close to $72.33 per barrel.  Meanwhile, June contract Brent crude was down 43 cents to $72.57 per barrel.

Nymex unleaded gasoline fell 6.4 cents to $2.11 per gallon even though the weekly US inventories report is expected to show stockpiles lower again.