Gas Prices Drop Further after Bush's Speech to U.N.

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Gas Prices Drop Further after Bush's Speech to U.N.

NEW YORK -- Crude oil and gasoline prices fell to a new low this week after President George W. Bush announced that he will give Iran a chance to end the nuclear dispute with diplomacy, Bloomberg News reported.

On Tuesday, Bush told members of the European Union that "the United States will come to the table" once Iran -- the world's fourth largest oil producer -- stops its uranium processing.

Crude oil for October delivery fell 3.4 percent, or $2.14, to $61.66 a barrel -- the lowest since March 21 -- on the New York Mercantile Exchange. This most recent dip is the largest since May 15, Bloomberg News reported. Since July 14, when Middle East tensions started easing, oil futures have fallen 21 percent from the record $78.40 a barrel.

Gasoline for October delivery also fell -- 4.8 percent or 7.58 cents -- to $1.50 a gallon, the lowest since Feb. 22. At the pump, regular gasoline has fallen 11 percent from last year, according to AAA reports.

The Middle East tensions stemmed from sanctions that were passed against Iran to stop its nuclear program. After the deadline passed earlier this month without the halt of the program, negotiations with the European Union have been suggested between the country and the West, instead of forcing a standoff that would reduce exports from the country and disrupt oil supplies.

But some industry experts attribute the fall to other reasons. Tom Kloza, chief oil analyst at the Oil Price Information Service told Forbes "It's typical to see prices come off summer highs by 25 percent or even 35 percent in the last hundred days of the year. The cycle is a little early this year."