Oil Falls On Iran Nuclear Hopes, US Gasoline Slides with RINs
NEW YORK, Aug 6 (Reuters) - Oil fell around $1 a barrel on Tuesday, as Iran's new president signalled 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.
A spokeswoman for the U.S. State Department said Rouhani's inauguration presented "an opportunity," but that the United States wants to see Iran take "credible steps" toward the solution of the conflict.
The price of U.S. gasoline fell 1.25 percent, dragged by a sell-off in the ethanol credits U.S. refiners must purchase to comply with environmental regulations.
The cost of the credits, also known as Renewable Identification Numbers (RINs), slid almost 20 percent as the Environmental Protection Agency announced it would use its authority to lower its volume goal for biofuel use in 2014.
RINs fell as low as 80 cents, after having reached prices of more than $1 on Monday and of $1.50 two weeks ago.
"The RINs issue sent oil products lower, and they were already weak because of returning refinery units," said Phil Flynn, an analyst with Price Futures Group in Chicago.
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