August WTI rises above $140 per barrel

Crude oil prices jumped to a new high for a front-month contract at $140.39 per barrel Thursday after Libya said that it might cut oil production, citing sufficient supplies, although there was no indication of how much the cut might be or when the decision might be made.

In addition, the president of the Organization of Petroleum Exporting Countries said that he thinks the price of oil could rise to as much as $170 per barrel this summer but that he does not think the price will rise to $200 per barrel.

West Texas Intermediate crude for August delivery closed up $5.09 to $139.64 per barrel after rising as high as $140.39 per barrel, the highest price ever for a front-month contract, on the New York Mercantile Exchange, while August contracts for Brent crude were last reported up $5.74 to $140.05 per barrel on the ICE Futures Europe exchange in London.

Natural gas inventories in the US were reported to have risen by 90 billion cubic feet last week to 2.03 trillion cubic feet, but Nymex August natural gas futures were up 38 cents to $13.26 per million British thermal units.

Nymex July gasoline futures were up 12 cents to $3.51 per gallon, but at-the-pump prices were steady overnight at $4.067 per gallon on average nationally.