Oil Prices Posted a Recent Drop

Oil prices dropped once again following the recently disappointing employment figures and news that Iran consented to new discussions regarding its nuclear pursuits.

West Texas Intermediate (WTI) crude prices declined by 85 cents to finish at $102.46 per barrel. A similar price drop was posted by Brent crude with a decrease of 76 cents to end at $122.67 a barrel.

After dropping in October because of economic concerns, gasoline and crude oil prices continued to bounce back until recently. The latest survey by Lundberg consisting of 2,500 stations showed that the recent gasoline price average nationwide was at $3.97 per gallon. A similar survey conducted by the Oil Price Information Service and the AAA showed that the recent average of gasoline prices in the United States was at $3.93 per gallon.

Worries regarding a prolonged conflict with Iran have increased crude oil prices by $13 to $14 per barrel said Jim Ritterbusch, an independent analyst. Oil is expected to further decline if Iran cooperates with the West but prices are still expected to stay high in the coming months added the analyst.

Iran as the second largest oil producer in the OPEC consented to discuss its nuclear ambitions in the days to come with the UN Security Council members, all five of them. That move relieved worries that a continuous conflict between Iran and the West will lead to more tightening of oil stocks.

Currently, the international sanctions have led several nations, which largely imports oil from Iran, to look for other sources.

Elsewhere in the energy markets, gasoline dropped to its lowest in three weeks with slower employment growth in the United States. Moreover, increasing Chinese inflation led to concerns that the worldwide fuel demand may decrease.