Crude oil prices up on supply worries

Crude oil prices headed into record territory again on Thursday on indications that global demand could test supplies.

Demand is especially strong in China, where the government is rebuilding after the destructive May earthquake in Sichuan Province at the same time that it is preparing for the Summer Olympics, set to open in Beijing on 8 August.

West Texas Intermediate crude for August delivery ended up $1.72 to $145.29 per barrel on the New York Mercantile Exchange, a new record, after going as high as $145.85 earlier in the session, also a new record.

August contracts for Brent crude added $1.84 to $146.10 per barrel after going to a new record at $146.69 per barrel on the ICE Futures Europe exchange in London.

Another factor in the price gains included a statement from the Saudi Arabian oil minister that his country will raise production if necessary, but that there are no plans currently to do so even though prices are high as it is able to supply all its buyers adequately at present production levels.

In addition, Tropical Storm Bertha formed in the eastern Atlantic but it is not currently predicted to enter the oil producing regions of the Gulf of Mexico.

At the pump prices for regular unleaded gasoline reached a new record at $4.098 per gallon in the United States ahead of the long Independence Day weekend.

Nymex August gasoline futures jumped 2.2 cents overnight to $3.571 per gallon while August heating oil gained 3.4 cents to $4.10 per gallon, a new record high.

Floor trade will be closed on the New York Mercantile Exchange on Friday in observence of Independence Day, but electronic trade will be open.