Iran Anxiety Sends Oil to New Highadmin
Oil prices shot to a new record near $127 a barrel on worries that Iran might cut crude oil production. Gasoline rose to a new record over $3.73 a gallon, and its advance showed little sign of slowing ahead of the Memorial Day weekend, the traditional start of the summer driving season.
Light, sweet crude for June delivery rose to $126.98 a barrel in midday trading on the New York Mercantile Exchange before retreating to settle at $125.80, up $1.57 for the day.
Iranian officials denied reports the oil-rich nation is ready to cut production, while some analysts said the country’s economy is in bad shape and cannot afford to lose any oil money.
In other Nymex trading, June gasoline futures rose 3.58 cents to settle at $3.20 a gallon, and June heating oil futures gained 13.91 cents to settle at $3.6989 a gallon after earlier rising to a record $3.7146. Natural gas futures added 12.1 cents to settle at $11.422 per 1,000 cubic feet.