Crude oil down nearly $1

Crude oil prices dropped on Monday as Iran continued to take a conciliatory path over negotiations dealing with its nuclear ambitions.  While tensions remain, several Iranian officials have called a western incentive package a “step forward” in the ongoing dispute.

Meanwhile, the Organization of Petroleum Exporting Countries said that it expects oil demand to rise in the second half of 2006 despite higher prices and rising interest rates.  It further said that there were signs that demand will ease, but not until next year.

The price for Brent crude August contracts was 96 cents lower at $67.84 per barrel at late afternoon in London on the International Petroleum Exchange.  July delivery West Texas Intermediate crude had declined by 88 cents to $69.00 per barrel in late morning trade on the New York Mercantile Exchange.