Oil prices decline on easing tensions

With the United States government announcing that it is willing to conduct talks with Iran if it will suspend its uranium enrichment program, and with the UN Security Council’s five permanent members scheduled to meet today to decide on incentives to offer Iran in return for that nation’s cooperation on nuclear issues, the price of crude oil dropped significantly during the day on Wednesday.  The declines came ahead of a meeting of the Organisation of Petroleum Exporting Countries, during which the cartel is expected to hold production quotas at current levels.

July contract Brent crude oil on the International Petroleum Exchange declined by  $1.73 to $69.32 per barrel in London, while West Texas Intermediate crude for July delivery lost $1.72 to $70.31 per barrel.  The declines came even though Iran continued to say that it is determined to continue with its nuclear program, which is said includes the intention to build two nuclear reactors.