Oil Prices Near $76 a Barrel

Oil prices are at record levels this morning, within striking distance of $76 a barrel.

On the New York Mercantile Exchange, oil shot up to $75.89 this morning, up 94 cents and surpassing the previous intraday high of $75.78 set last Friday.

Among the factors driving oil higher:

• tensions in the Mideast, as Israel intensifies military operations in Gaza and Lebanon
• in Nigeria, rebels set off explosions at facilities belonging to oil company Agip
• Iran says it will not give up any part of its nuclear program
• declining oil and gasoline inventories in the U.S.

Oil market analysts also warn there is potential for even higher prices as the U.S. hurricane season unfolds.

Prices for heating oil, gasoline and natural gas futures were also higher.

The U.S. Energy Department said Wednesday commercially available crude oil stocks shrank by six million barrels to 335.3 million barrels last week, though crude supplies are still two per cent higher than last year.