Crude oil prices keep going up

Crude oil prices hit another new high at $126.98 per barrel in midday trade in New York after reports that Iran will cut oil production.

Officials in Iran later denied that any cuts were forthcoming but confirmed that the possibility of doing so has been discussed.

Heating oil hit a new record in New York as well at $3.7146 per gallon on indications that distillates demands are not being met by refiners after the International Energy Agency reported that supplies in developed nations were down 6.7 percent in March over the same time last year.

US distillates stockpiles were 2.6 percent below the five-year average last week.

The IEA also cut its worldwide demand growth forecast, saying that price increases are hurting demand in the US and in Europe.

Meanwhile, the US Senate, in a 97 to 1 vote, asked President George W. Bush to stop adding oil to the nation’s strategic reserves in order to bring prices down, but the administration contends that not enough oil is diverted - about 70,000 barrels per day on average - to have any effect on prices.

June contracts for West Texas Intermediate crude fell back from the new record in afternoon trade but still ended up $1.57 to $125.80 per barrel on the New York Mercantile Exchange while Brent crude for June delivery gained $1.15 to $124.06 per barrel.

Nymex June gasoline was up 4 cents to $3.21 per gallon after hitting a record high of $3.2275 per gallon earlier in the day, while June heating oil ended 14 cents higher to $3.70 per gallon after hitting its new high.

Pump prices for gasoline and diesel in the United States were up again as well, with unleaded regular gasoline adding 1.4 cents overnight to $3.73 per gallon while diesel fuel jumped another 2.9 cents to $4.39 per gallon.