Oil slides; early rally quashed by Iran speculation
Oil fell on Tuesday, with U.S. crude settling near $105 as Iran's new president signaled willingness to negotiate with the West over Tehran's disputed nuclear program, and as U.S. gasoline prices slid after a sell-off in ethanol credits.
Iran's newly elected President Hassan Rouhani said he was ready to enter "serious and substantive" negotiations, reducing the geopolitical risk premium for oil prices. The price of U.S. gasoline fell 1.25 percent, dragged by a sell-off in ethanol credits U.S. refiners must purchase to comply with environmental regulations.
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