Global crude oil prices fell sharply on Wednesday after Washington signaled it was willing to engage in direct negotiations with Iran over its nuclear program, provided Tehran suspended uranium enrichment. The announcement marked the first offer of substantive US-Iran talks in 26 years.
Secretary of State Condoleezza Rice made the offer as she departed for a meeting of world powers in Vienna. She said the US would join European allies Britain, France, and Germany at the negotiating table once Iran verifiably halted enrichment activities.
New York light sweet crude for July delivery dropped $1.48 to $70.55 per barrel, while London's Brent North Sea crude for July fell $1.42 to $69.63. Prices had surged past $72 on Tuesday.
Markets were also weighing an expected OPEC decision to hold production quotas steady at its Thursday meeting in Caracas. The cartel's current official quota stands at 28 million barrels per day, its highest in 25 years. "It looks like they are not going to reduce production," said Tony Nunan, energy risk manager at Mitsubishi Corp in Tokyo.
The US Energy Department was set to release its weekly crude inventory report Thursday, delayed one day by the Memorial Day holiday. Traders anticipated rising gasoline supplies at the start of the summer driving season.
Historical summary. TurkishPress restated this wire report, first published in May 2006, in its own words.