Oil prices fell in midday trading Wednesday, May 31, thanks
to news that the U.S. was willing to talk with Iran and expectations of
increased oil supplies in the U.S.
Light, sweet crude fell to $70.20 per barrel in midday
trading on the New York Mercantile Exchange, down from a high above $72 per
Forbes reported that the drop coincided with the news
that U.S. Secretary of State Condoleezza Rice had made an offer to speak with
Iranian officials in what would be the first substantive diplomatic talks
between the two nations since relations were broken off 26 years ago.
Further adding to the drop were expectations that U.S. fuel stocks would be up when the Department of Energy issues its weekly report on
Thursday, June 1.
Another contributing factor, Forbes reported, was the
assurance from the Organization of Petroleum Exporting Countries that it would
keep producing oil at full capacity. OPEC is expected to announce its decision
after its meeting on June 1 in Caracas.