Crude-oil futures reached a new price record above $74 a barrel on Friday amid continuing concern about Iran's nuclear program and declining U.S. gasoline supplies. Light sweet crude for June delivery rose to $74.45 a barrel in late morning trading on the New York Mercantile Exchange, setting a new intra-day record for a front-month contract. The May contract, which expired Thursday, settled at $71.95 on Thursday. Crude prices are more than 40 percent higher than a year ago and have risen 5 percent in the last week, as gasoline and other commodity prices have also reached record highs. U.S. retail gasoline prices also kept rising, with the average price at $2.855 a gallon (3.8 liters), up 3 cents from a day earlier and more than 60 cents higher than a year ago, according to the American Automobile Association's daily fuel report. U.S. refineries are operating below normal levels as they continue to recover from last summer's hurricanes that damaged infrastructure along the U.S. Gulf coast, and as they perform seasonal maintenance. Furthermore, the transition from the gasoline additive MTBE—found to pollute drinking water—to ethanol is creating additional fears about an already tight gasoline market.
