Crude prices drop over $9 in two days

Crude oil prices fell significantly for a second straight day Tuesday, bringing declines for the two days to more than $9 per barrel.

The declines came on profit-taking, on a stronger dollar, and on fewer worries about a conflict between Iran and the West over Iran’s nuclear program.

Iranian President Mahmoud Ahmadinejad, in Kuala Lumpur for a meeting of the leaders of eight developing Islamic nations, discounted the idea of a war between his country and the US & Israel.

Meanwhile at the G8 summit in Japan there were calls for oil producers to increase production and refining and to spend more money in exploration and output.

August contracts for West Texas Intermediate crude dropped $5.42 to $135.95 on the New York Mercantile Exchange while Brent crude for August delivery fell $5.37 to $136.50 on the ICE Futures Europe exchange in London.

At the most recent report, Nymex August gasoline futures had dropped 12 cents to $3.36 per gallon while August heating oil was down almost 15 cents to $3.82 per gallon and August natural gas had dropped 52 cents to $12.45 per million British thermal units.

Despite the declines, at-the-pump prices for regular unleaded gasoline in the United States remained at a record $4.108 per gallon while pump prices for diesel fuel added more than half a cent to $4.807 per gallon, a new record.