By John Wilen, AP Business Writer
NEW YORK (AP) -- Oil futures jumped to a new record above $98 a barrel late Tuesday after bombings in Afghanistan and an attack on a Yemeni oil pipeline compounded the supply concerns that have driven crude prices higher in recent weeks.
NEW YORK (AP) -- Oil futures jumped to a new record above $98 a barrel late Tuesday after bombings in Afghanistan and an attack on a Yemeni oil pipeline compounded the supply concerns that have driven crude prices higher in recent weeks.
Those concerns were also fed by a government prediction Tuesday that domestic oil inventories will fall further this year while consumption rises.
At the pump, meanwhile, gas prices continued to rise, following oil's 39 percent price rally since August. The national average price of a gallon of gas jumped 2 cents overnight to $3.024 a gallon, according to AAA and the Oil Price Information Service.
Separately, the federal Energy Information Administration reported that diesel fuel prices reached a national average of $3.303 a gallon, a new record.
Light, sweet crude for December delivery rose $2.72 to settle at a record $96.70 a barrel on the New York Mercantile Exchange Tuesday after earlier rising as high as $97.10, a new trading record.
Later, the contract surpassed that mark, climbing as high as $98.03 in electronic trading.
Oil's seemingly relentless climb raises the question of how high energy prices will go. If crude does keep going up, it might be some time until consumers see relief at the pump. Some analysts predict prices could rise as high as $3.50 to $4 a gallon next summer.
NVDL: "I wonder whether we should be concerned about this? Do you think we should be? Oh what's that on TV about Britney Spears; turn up the volume..."
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