Crude oil prices decline substantially

The ceasefire between Israel and Hizbollah that went into effect Monday morning local time sent crude oil prices substantially lower on Monday, even though analysts said that attention would likely return to the troubles in Nigeria and the controversy over Iran’s nuclear program.  Also helping the decline was an announcement by BP that its earlier assessment that it would have to completely shut down its Prudhoe Bay, Alaska, oil field was pessimistic and that it will be able to maintain some production from the western half of the field as it repairs a damaged pipeline.

Brent crude for September delivery was $1.81 lower to $73.82 per barrel, while September contracts for West Texas Intermediate crude on the New York Mercantile Exchange dropped $1.60 to $72.75 per barrel.  Meanwhile, Nymex September unleaded gasoline was a little over 8 cents lower to $1.9805 per gallon.