Oil Trades at $130.83 a Barrel
<b>NEW YORK</b> --- During a three-day stretch last week, oil prices tumbled nearly $16, prompting some analysts to question whether the oil bubble had finally burst. It was the biggest one-week drop in more than three years, according to the Associated Press.
During last week, oil prices fell by 11 percent because of concerns about a weakening U.S. economy, the Wall Street Journal reported.
Today, light, sweet crude for August delivery gained $1.95 by early afternoon to trade at $130.83 a barrel on the New York Mercantile Exchange. The gain was largely attributed to news about Tropical Storm Dolly, which is expected to reach southern Texas by mid-week, the Wall Street Journal reported. Futures also regained strength after a weekend summit between Iranian officials and the European Union to discuss Iran's nuclear program. The presence of U.S. Undersecretary of State William Burns represented the highest-level contact between the U.S. and Iran in 29 years.