The prospect of a Middle East war slightly fell as a consequence of the EU's offer, bringing down crude oil futures as much as 2 percent. The effort entails the support of China, France, Germany, Russia, the U.K. and the U.S., all of whom are pressuring the nuclear envoy of the oil-rich nation to convene with EU foreign policy chief Catherine Ashton. The effort is driving toward achieving an agreement regarding the nuclear program of Iran, which has raised eyebrows within many western nations.
"Oil was weak earlier on economic worries but held up better than the other commodities," analyst Phil Flynn with PFGBest in Chicago told the news service. "Once the EU announced that it was ready for talks with Iran, the oil market started to really move lower. Anything that looks like some progress is going to push prices lower."
At 11:02 a.m. on Tuesday, crude oil futures fell 1.18 percent, a $1.46 loss to $122.34 per barrel.
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