In response to signs of Iran responding positively to a package of incentives by world powers that hope to curb its nuclear program, oil prices fell. Light sweet crude for July delivery fell to US$72.25 a barrel in Asian electronic trading on the New York Mercantile Exchange, midmorning in Singapore.
However, an uncertain outlook will prop up oil prices, as the main fear is that Iran could disrupt oil supplies if provoked by sanctions or some other punishment. In the event of disruption of supplies by Iran, the U.S. government would be willing to tap its emergency oil reserve. Many analysts believe that the market remains well-supplied, despite the concerns.
07-Jun-06 
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