Oil prices set record for second time

| 7/7/2006

The price of oil has set a record for the second time in a week on Friday, July 7, hitting a new high of $75.78 in early trading on the New York Mercantile Exchange.

That tops the previous record of $75.19, which was set earlier in the week.

Though prices fell back closer to the $75 mark later in the day, The Associated Press reported that the ongoing standoff between the U.S. and Iraq, combined with the continued conflicts in Iraq and Nigeria, are expected to keep prices high for the time being.

Continued violence in Nigeria has forced the shut down of about 500,000 barrels a day of production from that country, which is a member of the Organization of Petroleum Exporting Countries.

In addition, the U.S. Department of Energy released a report on Thursday, July 6, that showed the demand for gasoline in the country was up by 1.4 percent in June compared with a year ago.