Crude reaches new record before declining

The price of crude oil hit another new record high at $126.40 per barrel in New York before falling back to trade at $124.15 per barrel near the close of floor trade on the New York Mercantile Exchange, $1.81 lower than Friday’s close.

Brent crude was last reported to be trading down $1.87 to $123.53 per barrel on the ICE Futures Europe exchange in London.

The declines came on profit taking after crude’s run of new record highs and on speculation that a major earthquake in China could mean a drop in demand.

China’s imports have already declined, with April’s imports down 3.9 percent from the same period last year, and there has been some speculation that higher prices could lead to drops in demand in emerging markets such as China.

Nymex June gasoline was down 4 cents to $3.16 per gallon, while June heating oil dropped 6 cents to $3.57 per gallon and June natural gas was 24 cents lower to $11.30 per million British thermal units.

At-the-pump prices for gasoline and diesel in the United States were up to new records again, with regular unleaded gasoline up 1.1 cent to $3.718 per gallon and diesel fuel adding 3.1 cents to $4.361 per gallon.