New York – Oil prices rose above $74 a barrel Tuesday amid fear that international pressure on Iran to modify its nuclear program may lead to supply cuts by the key exporter.
An Iranian official earlier Tuesday reiterated the country’s intention to keep enriching uranium, while U.S. Undersecretary of State Nicholas Burns said he believed European governments will agree to sanctions against Iran.
Analysts expect energy futures to remain high, as traders keep one eye on issues abroad – Iran’s nuclear program, rebels in Nigeria cutting off oil supplies, and the possibility of terrorist attacks on oil facilities – and another eye on problems on the home front, notably tight U.S. gasoline supplies going into the summer driving season.
Light, sweet crude futures for June delivery rose 91 cents to settle at $74.61 a barrel Tuesday on the New York Mercantile Exchange – moving closer to the intraday peak of $75.35 reached briefly on April 21.
Pump prices also crawled higher, nearing the record highs seen in early September after Hurricane Katrina struck the Gulf coast and the region’s oil facilities. On Tuesday, the average cost of a gallon of regular, unleaded gasoline was $2.92, up 35 cents from a month ago, according to AAA’s daily fuel gauge report.
U.S. drivers are paying about 14 percent more to fill their tanks than a year ago.
