Oil Drops After Mild Monday Gains As Iran Tensions Ease

Good news out of Iran on Tuesday helped add to crude oil's price decline, already spurred by economic woes plaguing Europe.

Oil futures on the New York Mercantile Exchange fell $1.12 to $91.45 a barrel, adding to a slide in prices that began on May 2.

With the new price, crude oil is roughly $20 below its 52-week high and $14 higher from its 52-week low.

Tuesday's drop essentially cancels the gains it made after Monday's close, reported MarketWatch.

Crude oil in New York dropped after Iran allowed International Atomic Energy Agency investigators to re-enter the country, to continue their monitoring of the country's nuclear program.

Relations between Iran and the international community were strained, with tensions leading to the brink of armed confrontation. Iran threatened to close off the Strait of Hormuz, one of the world's vital energy shipping channels.

Fears of a disruption in global oil supply pushed the price upwards.

Iran's allowing investigators back into the country has lead to hopes the stand-off with the West is easing.

Adding to the downward pressure on crude oil futures is a warning by the Organization for Economic Cooperation and Development that the Eurozone could fall into recession by the end of the year, reported the Associated Press.

That would slash oil demand at a time when supplies are increasing, the AP said.

Crude oil in London, the index used to gauge the price of oil internationally, fell by 52 cents to $108.29.