Crude oil prices down on reduced Iran tensions

August contracts for West Texas Intermediate crude oil dropped $3.92 to close at $141.37 per barrel on the New York Mercantile Exchange Monday after going as low as $139.50 earlier in the session, while Brent crude was down $2.55 to $141.87 per barrel on the ICE Futures Europe exchange in London.

The declines, which are not considered to be the start of a new trend, came on diminished supply worries after an EU negotiator was reported to have said that he received a litter from Iran concerning negotiations over its uranium enrichment program and that he had also had a conversation with Iran’s top negotiator that he characterized as “constructive”.

Meanwhile, Iranian news media reported that there would be more talks later this month.

Also helping send prices lower were reports that while Tropical Storm Bertha has been upgraded to hurricane status, it will travel too far north to be a threat to oil facilities in the Gulf of Mexico.

Nymex August gasoline futures were down 9 cents to $3.48 per gallon while August heating oil was down 14 cents to $3.97 per gallon and August natural gas dropped 58 cents to $13 per million British thermal units.

At-the-pump prices for regular unleaded gasoline and diesel were again in record territory however, as gasoline added 0.1 cent to $4.80 per gallon on average nationwide and diesel was up nearly a cent to $4.80 per gallon.