Crude oil prices driven by Middle East unrest

Prices for crude oil decline slightly Monday morning as more nations called for a cease-fire between the parties fighting in Israel and Lebanon and US Secretary of State Condoleezza Rice visited Beirut to try to help create what she called a “sustainable” cease-fire.  In addition, the deputy prime minister of Syria said that his country is ready to negotiate with the US, easing fears that the fighting could spread regionally.

Brent crude for September deliver was down 2 cents to $73.73 per barrel in London during the day, while September contracts for West Texas Intermediate crude on the New York Mercantile Exchange was 18 cents lower to $74.25 per barrel at one point.

Gasoline prices, however, were higher.  Nymex unleaded gasoline for August delivery was up almost a cent to $2.2950 per gallon.  In addition, pump prices in the US averaged $3.105 per gallon last week, up two cents from the previous week and higher than prices in the wake of Hurricane Katrina last fall.