Oil prices fell below $107 a barrel this evening after Saudi Arabia denied an Iranian media report of a Saudi pipeline explosion.
Benchmark oil for April delivery was down $2.21 (2%) to $106.63 on the New York Mercantile Exchange.
Crude had jumped to $110.55 yesterday after an unconfirmed Iranian media report of a pipeline explosion in Saudi Arabia. Saudi officials denied the report.
Oil prices have risen from $96 last month amid fears that conflict over Iran's nuclear program could trigger a disruption in global crude supplies. Signs of an improving US economy have also bolstered investor optimism and crude prices.
