WTI in new record above $135 before decline

Crude oil touched a new record - again - in New York trade Thursday at $135.09 per barrel before declining, while Brent crude also rose, to $135.14 per barrel, before falling from Wednesday’s close.

The declines came on profit-taking and virtually no one is expecting that today’s falling oil prices are the beginning of a trend.

The Organization of Petroleum Exporting Countries and US Energy Secretary Sam Bodman have both said recently that there is nothing that can be done about high oil prices, but while OPEC officials blame speculators for the succession of new record prices, Mr. Bodman blames the price spikes on tight supply amid growing global demand for oil and oil products.

At just before the close of floor trade on the New York Mercantile Exchange, West Texas Intermediate crude for July delivery was down $2.32 from Wednesday’s close to trade at $130.85 per barrel, while July contracts for Brent crude were down 91 cents to $131.79 on the ICE Futures Europe exchange in London.

Nymex June gasoline futures dropped 4 cents to $3.36 per gallon while July heating oil had added 3 cents to $3.95 per gallon and July natural gas had gained 7 cents to $11.85 per million British thermal units.

At-the-pump prices for US gasoline was up again, with regular unleaded adding 2.4 cents overnight to a natural average of $3.831 per gallon as the long Memorial Day weekend, the traditional start of the summer driving season, got underway.