Oil prices begin to fall

Drivers could see relief at gas pumps soon

HOUSTON — Oil prices are suddenly slumping again, just as American motorists were feeling the bite. The price of crude has dropped by almost 7 percent since a recent high on Tuesday, a result of signals from Russian and Saudi officials that they are ready to increase production.

The abrupt reversal interrupted a surge in the American benchmark from less than $50 a barrel last fall to over $70, largely because of the collapse of Venezuelan oil production, the withdrawal of the United States from the Iran nuclear deal and stronger global demand for energy.

Now Russian and OPEC officials appear concerned that the potential for a price spike similar to one a decade ago could spur another drilling frenzy in the United States as well as robust sales of electric cars and other fuel-efficient vehicles.

Russia’s energy minister, Alexander Novak, fanned speculation about a pivot on supplies when he suggested Thursday that Russia and producers in OPEC would talk next month about easing their 2-year-old agreement to reduce production.

On Friday, the Saudi oil minister, Khalid al-Falih, said producers had already begun consultations. “The anxiety level that has escalated over the last few weeks is a concern to us,” he said. “I think in the near future there will be a time to release supply.”

Energy experts had predicted for weeks that American motorists might head into the summer driving season facing an average gasoline price of $3 a gallon for the first time since 2014. Now, with oil falling below $70 a barrel in the United States, a lower gas price is possible. There is a lag of at least a few days between the direction of oil prices and gasoline prices.