Crude Oil Price Fell on Iran's Freeing British Hostages

Oil prices dropped Thursday as Iran's announcement that it would free 15 detained British sailors helped to ease fears about a disruption in oil supplies.

Light, sweet crude for May delivery fell 13 cents to $64.25 a barrel in midmorning Asian electronic trading on the New York Mercantile Exchange.

But traders have only shaved off part of the nearly $5 premium they added to crude futures after the sailors were detained March 23, when Iran said they entered its waters. Iran is located along the Strait of Hormuz, a key channel through which many oil tankers pass.