"Oil Falls Below $91 as Iran Allows Nuclear Probe"

"Oil fell to a seven-month low below $91 a barrel Wednesday after Iran agreed to allow the U.N. nuclear agency to restart an investigation into the country's nuclear program."

"By early afternoon in Europe, benchmark oil for July delivery was down 88 cents to $90.97 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell $1.01 to settle at $91.85 in New York on Tuesday.

In London, Brent crude for July delivery was down $1.30 at $107.11 per barrel on the ICE Futures exchange.

International Atomic Energy Agency chief Yukiya Amano said Tuesday that his investigators will have access to Iranian sites, scientists and documents in an effort to ensure the Middle Eastern country isn't developing nuclear weapons. Iran insists its nuclear program is only for power and medical applications.

The deal came a day before talks are scheduled to begin Wednesday between Iran and six world powers. The U.S. and Europe have imposed sanctions against Iran that are restricting its oil exports and have threatened to tighten them in the coming weeks.

'If there were to be further rapprochement between the conflicting parties, or indeed if the prospect of an easing of sanctions were to be raised, the risk premium would be likely to fall further, bringing oil prices down accordingly,' said analysts at Commerzbank in Frankfurt."

Pablo Gorondi reports for the Associated Press May 23, 2012.

SEE ALSO:

"Gas Prices: Purdue Economist Predicts Gas Prices Won't Top $4" (Indianapolis Star)

"THE RACE: Gas Price Drop May Offer Political Bonus" (AP 4/30/12)

"Oil to Fall on Resurgent Dollar, China Slowdown: Survey" (CNBC)

Source: AP, 05/23/2012