The price of Brent crude oil dropped close to the $100 benchmark price for the commodity during trading on Tuesday, as concerns about possible Fed stimulus and the U.S. economy negatively affected investor sentiment.
Reuters reports that crude oil futures dipped below $106 a barrel on July 31, reversing any gains that were made by the commodity after Chinese officials noted they were looking to stimulate economic growth.
The energy commodity has fluctuated during July, and despite being up 8 percent during the month, the price of crude oil could be affected by increasing tension in the Middle East and economic uncertainty in Europe.
"For the moment, the economy remains the main focus for most investors; that isn't to say that the situation in Iran and the Middle East isn't of concern," Ric Spooner, chief market analyst at CMC Markets, told the news outlet.
Bloomberg News reports that the oil minister for Iran said that $100 a barrel seemed like a "fair" price for crude. Rostam Qasemi noted the Organization of the Petroleum Exporting Countries no longer needs to convene a meeting to discuss declining prices.
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