Wed, 05 Dec 2007
Some analysts believe the report on Iran's nuclear program recently issued by US spy agencies has caused crude oil prices to decrease.
The US National Intelligence Estimate (NIE) released on Monday suggests there is no justification for Washington's bellicose rhetoric against Tehran, as no 'evidence' has been found that indicates Iran's nuclear program may be aimed at acquiring nuclear arms.
Some analysts say that the NIE report has influenced oil prices because of the effect it has had on reducing geopolitical tension, as it now seems less probable the US will be able to wage war on Iran.
Economic problems in the US and speculation that the OPEC may increase production are among other key factors allegedly influencing the decline in oil prices.
The United States is believed to be gradually moving into an economic recession. This is while the US consumes the lion's share of the world's crude oil.
OPEC member states are slated to convene in Abu Dhabi on Wednesday, December 5. Some analysts are optimistic that the Organization may opt to increase its output.
Global oil prices are now near $90 a barrel.
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