Iran, Nigeria blamed for record high

Americans are paying $212 million per day more on gasoline than a year ago.
WASHINGTON (AP) -- Oil prices settled at a new high above $71 a barrel Tuesday as supply threats around the world overshadowed a new report from OPEC forecasting weakening global demand.
There was no fresh catalyst for Tuesday's buying, but analysts said the market psychology would likely remain bullish until there is some resolution to a variety of geopolitical uncertainties, particularly the West's nuclear dispute with Iran and output disruptions in Nigeria.
Global Insight oil analyst Kevin Lindemer said the slowing consumption growth and swelling inventories of crude oil in the United States would typically help pull down prices, but "all of that is getting swamped right now by Iran and Nigeria."
Price fluctuations
Light, sweet crude for May delivery on the New York Mercantile Exchange rose as high as $71.60 a barrel, surpassing the previous intraday record of $70.85 set Aug. 30. Oil settled at $71.35, an increase of 95 cents from Monday's record closing price.
With gasoline prices averaging $2.79 a gallon, U.S. motorists are shelling out $212 million per day more than a year ago, and President Bush said Tuesday he was "concerned" about the impact this was having on American families and small businesses.
Many economists believe the impact of $70 oil on the country's financial engine will not be as drastic as it was last August in the aftermath of Hurricane Katrina. The argument is that consumers have gotten accustomed to prices at today's levels because they have moved up gradually and that it will take a sharp and sustained leap in energy prices before there are any serious economic ramifications.
"We will feel real pain at the pump before this market tops out," said James Cordier, president of Liberty Trading in Tampa, Fla. Cordier predicted gasoline prices could rise as high as $3.50 a gallon in some parts of the country this summer.
So far, demand for gasoline continues to rise, albeit at a slower pace than a year ago, according to Energy Department data.
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