Oil drops on Saudi supply promise

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The price of oil is falling after Saudi Arabia promised to keep markets well-stocked with petroleum.

The world’s biggest oil producer made the announcement Tuesday in reaction to fears that a standoff over Iran’s nuclear program could hurt oil supplies from the Middle East. The Saudis say they’re ready to meet any shortfalls — perceived or real — in global oil supplies.

Oil has jumped by 9.3 percent since January.

Concern about a slowdown in China’s economy may also be pressuring oil prices Tuesday.

Benchmark U.S. crude gave up $2.13 to $105.96 per barrel in New York while Brent crude lost $2.16 to $123.55 in London.

Meanwhile, retail gasoline prices are now averaging $3.846 per gallon.