The price of oil rose above $95 a barrel Monday after negotiations in Geneva to curb Iran’s nuclear program were stalled.
Meanwhile, U.S. pump prices are the lowest they’ve been since February 2011.
Benchmark U.S. crude for December delivery rose 54 cents to $95.14 a barrel on the New York Mercantile Exchange. Brent crude, the international benchmark, gained $1.28 to $106.40 a barrel on the ICE exchange in London.
Six key powers are considering a gradual rollback of sanctions that have crippled Iran’s economy. In exchange, they demand initial curbs on Iran’s nuclear program.
The U.S.-led negotiations, however, failed to yield a deal over the weekend. This eased concerns of an influx of Iranian oil into world markets at a time of already abundant supplies.
In the U.S., drivers in many states are paying the cheapest prices in nearly 33 months, according to AAA. The nationwide average for a gallon of gasoline is now $3.19, down 16 cents from a month ago and 25 cents cheaper than at this time last year.
AAA attributes the recent decline to abundant supplies in the U.S., lower oil prices and the usual drop in demand as the weather gets cooler. In a statement Monday, AAA said gasoline “could fall very close to $3 per gallon by the end of the year.” The last time the nationwide average for gas was below $3 was Dec. 22, 2010.
Springfield, Mo., is the city with the cheapest gas, at $2.76, while San Francisco is the most expensive, at $3.74, AAA said.
In other energy futures trading on Nymex:
- Wholesale gasoline added 4 cents to $2.60 a gallon.
- Heating oil gained 2 cents to $2.89 a gallon.
- Natural gas advanced 2 cents to $3.57 per 1,000 cubic feet.