WTI, Brent down more than $3 per barrel

Crude oil declined substantially in New York on Tuesday after Iran complied with a key United Nations demand in relation to its nuclear program and as the International Energy Agency revised demand forecasts down.

The IEA said that high oil prices seem to be affecting demand and cut its prediction for fourth-quarter demand by 500,000 barrels per day and reduced its forecast for next year by 300,000 barrels per day, saying that demand growth will average 1.2 percent this year and 2.3 percent in 2008.

In addition, the EIA said that production increases in China, Azerbaijan, Russia, and in the OPEC nations added 1.4 million barrels of crude per day to supplies in October.

Meanwhile, there were reports that Iran supplied blueprints to its nuclear program, as the United Nations has demanded, a step toward more cooperation between that country and the West.

West Texas Intermediate crude for December delivery dropped $3.45 to $91.17 per barrel on the New York Mercantile Exchange and went as low as $90.13 per barrel during the session, while December contracts for Brent crude on the ICE Futures Europe exchange in London fell $3.18 to $88.80 per barrel.

Nymex December gasoline fell 10 cents to $2.32 per gallon and December heating oil was down 8 cents to $2.50 per gallon, while January natural gas dropped 5 cents to $8.28 per million British thermal units.