Iran report from US intel helps crude oil lower

Crude oil prices were lower on Tuesday ahead of a meeting of the Organization of Petroleum Exporting Companies and on a new report that says Iran stopped its program to develop nuclear weapons as far back as 2003.

In many eyes, the new report from a US intelligence agency lessens the chance that the United States will launch a pre-emptive strike against Iran despite a statement from US President George W. Bush that Iran remains a danger.

Meanwhile, it remains unclear whether or how much OPEC might boost production after its meeting later this week, with some member-nation oil ministers saying that they willing to increase production while others claim that there is no need to increase supplies.

Near the end of floor trade on the New York Mercantile Exchange, West Texas Intermediate crude for January delivery had dropped 99 cents to $88.32 per barrel while January contracts for Brent crude were down 38 cents to $89.42 per barrel on the ICE Futures Europe exchange in London.

Nymex January contracts for unleaded gasoline and heating oil each traded unchanged at $2.25 per gallon and $2.51 per gallon respectively, while January natural gas fell 5 cents to $7.16 per million British thermal units.