Crude futures tumbled nearly 4 U.S. dollars on Tuesday morning as the market worried that the demand would fall due to high oil prices and the tension in Middle East eased.
Light, sweet crude for August delivery dropped 3.72 dollars to 137.65 dollars as of 9:42 EST (1342 GMT) on the New York Mercantile Exchange. Price fell to as low as 137.48 dollars a barrel, the lowest level in nearly two weeks.
According to the market's most estimates, the U.S. Energy Department's weekly report to be released Wednesday will indicate a lower demand.
Analysts are expecting an increase inventory in gasoline in the past Fourth of July holiday weekend, which usually is flat or lower over holiday.
Meanwhile, Iranian President Mahmoud Ahmadinejad said Tuesday that he does not believe that there will be armed conflict between Iran and Israel or the United States. His comment eased much of the investors' concern about the potential disruptions of the area's oil exportation.
Source:Xinhua
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