Iran rumors spurred the growth of oil prices to a new record of $127 a barrel Tuesday.
The world is highly concerned by the Iran’s “intention” to cut crude oil production. Iranian officials denied that production cuts, but said a reduction has been discussed.
Light, sweet crude for June delivery gained a record of $126.98 a barrel in midday trading on the New York Mercantile Exchange Tuesday.
In addition, gas prices jumped up to $3.73 a gallon Tuesday. The national average price of a gallon of regular gas rose 1.4 cents overnight to a record $3.732.
Retail diesel prices increased by 2.9 cents Tuesday to a national average of $4.39 a gallon.
The International Energy Agency is though highly concerned that high prices are cutting demand for oil and petroleum products in the U.S. and Europe. The same situation is true about China , which recently reported a drop in crude imports.