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NEW YORK - Crude oil fell on Friday below $129 after tensions about Iran's nuclear program eased when the U.S. agreed to enter into talks.

Prices fell after Washington indicated this week that it wanted a diplomatic answer which would resolve the conflict regarding Tehran's nuclear program. The prospect of discussions lowers to possibility of an Israeli attack on Iran's nuclear facilities.

Oil has also fallen this week due to a weak economy in the U.S. that has led to expectations of lower fuel demand.

Crude oil futures for delivery in August fell 59 cents, or 0.46 percent to $128.70 at 3:53 p.m. on the New York Mercantile Exchange. On Thursday prices finished at $129.29 a barrel .

Brent crude for delivery in September fell 84 cents, or 0.65 percent to $128.70 on the London ICE Futures Exchange. Brent futures were trading as high as $147.50 last Friday.

Supporting prices earlier today, worries of supply disruptions from Nigeria rose as investors bought oil after the price of the commodity plunged nearly 11 percent earlier this week.

Eni SPA in Nigeria reported yesterday that pipeline which transports 47,000 barrels-a-day was closed after a sudden decrease of pressure. However, a military official in the country said an pipeline was affected by an explosion. Eni released a statement saying the cause of the incident was unknown.

Nigeria is a top crude exporter to the United States, the country has cut nearly a fifth of its oil output due to attacks to its facilities.

Also supporting prices, crude oil workers in Brazil's state owned Petrobras declared they would expand a strike to all the production and refining units of the company but until now the strike has not affected production.