Energy Sector Roundup: Another Oil Price Record

Oil Climbs to New High

Oil prices shot to a new high near $144 a barrel and went on to a record close, as the government reported a bigger-than-expected drop in crude stockpiles and the threat of conflict with Iran weighed on traders' minds.

Light, sweet crude for August delivery rose as high as $143.91 on the New York Mercantile Exchange, then eased back to settle at $143.57, putting it up $2.60 a barrel for the day.

Prices at the pump hit a new high ahead of the July 4 holiday weekend, rising half a penny to a new national record of $4.092 a gallon on average, according to AAA, the Oil Price Information Service and Wright Express.

In other Nymex trading, heating oil futures rose 12.8 cents to settle at $4.0715 a gallon, while gasoline futures rose 5.6 cents to settle at $3.5494 a gallon. Natural gas futures lost 11.6 cents to settle at $13.389 per 1,000 cubic feet.

Crude Supplies Down More Than Forecast

For the week ended June 27, crude oil inventories fell by 2 million barrels to 299.8 million barrels, 15.3 percent below year-ago levels the Energy Department's Energy Information Administration said in its weekly report.

Analysts expected a drop of just 1.2 million barrels, according to a survey by Platts, the energy research arm of McGraw-Hill Cos.

Gasoline inventories rose by 2.1 million barrels, or 1 percent, to 210.9 million barrels, 3.1 percent above year-ago levels. Analysts thought stockpiles would shrink by 500,000 barrels.