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Oil price falls, for now, as Saudis trump Iran threat

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ABC7's Jummy Olabanji reports that, according to AAA, the average family in the D.C. area has spent about $4,500 on gas for their cars in 2011. That's up from $3,700 in 2010. She talks with some drivers about how they feel about that.

Will gas prices be going back up to these levels in 2012? (Photo: Associated Press)

NEW YORK (AP) - Oil prices fell on Wednesday, as Saudi Arabia said it will offset any loss of oil from a threatened Iranian blockade of a crucial tanker route.

In New York benchmark crude fell 77 cents to $100.57 a barrel. Brent crude fell 82 cents to $108.45 a barrel in London.

Iranian officials have said that Iran might close the strategic Strait of Hormuz, if western nations embargo the country's oil because of its ongoing nuclear program.

A Saudi oil ministry official told The Associated Press that Saudi Arabia and other Gulf producers are ready to provide more oil if necessary. Some analysts think the Iranian threats are more posturing than a real concern.

Meanwhile in the U.S. the average price of gas rose a penny to $3.24 a gallon.

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