Intl desk: Oil prices dropped sharply at Monday’s opening of Asian markets as investors breathed cautious sighs of relief following two consecutive nights without US strikes on Iran, leaving the door open for new talks.
The price of a barrel of international benchmark North Sea Brent crude fell 5.58 percent to $91.38, while its US counterpart West Texas Intermediate slid $5.46 percent to $84.43.
The price for a barrel of Brent crude oil to be delivered in September dropped 4.9% to $92.02 shortly after trading resumed. The decline followed a 3.9% drop on Friday.
Brent crude, the international standard, briefly hit $102 a barrel last week. That was $30 more than the most actively traded contract in the Brent market was going for early in the month, and the highest it had been since May.
Oil prices surged this month because of increased fighting in the Middle East and worries a return to all-out war would further slow the global flow of crude.
Oil producers have since searched for alternative routes, but those are under pressure too. Last week, attacks hit Saudi oil tankers that were using the Red Sea to leave the region. When less oil is available for customers to buy, the price goes up and fuel prices do as well.
In the United States, the average price for a gallon of regular gasoline on Sunday was $4.11, up from $3.90 a month ago and just $3.15 a year ago, according to motor club AAA.
If oil prices stay elevated, it could lead to higher prices for every product that gets shipped, trucked or flown around the world, including groceries. Although the U.S. economy continues to grow, the ongoing conflict with Iran has dragged consumer confidence in it lower.
Source: News Agencies
