World crude oil prices closed with record highs above 72 dollars Wednesday amid worries of supply in Iran and Nigeria, as U.S. energy stocks dropped.

New York's main contract, light sweet crude for delivery in May, added 82 cents to close at 72.17 dollars a barrel, its highest closing price since 1983, after touching an intra-day high of 72. 40 dollars.

On London's ICE Futures exchange, the price of Brent North Sea crude for June delivery climbed 1.22 dollars to 73.73 dollars a barrel, its record high since 1988, after touching an intra-day high of 74 dollars. Inventories of U.S. commercial crude oil and refined products declined in the week ended April 14, the Energy Department reported Wednesday in its weekly nationwide survey.

OPEC's president said on Tuesday oil would retreat from its record high if Iran's opponents stopped talking so tough over the Islamic republic's nuclear programme.

Edmund Daukoru, who is also Nigeria's oil minister, added that it's the threatening statements being made against Iran that caused the price hike."

Daukoru said a shortage of refineries to turn crude oil into products like gasoline and heating oil was behind a four-year rally that has taken oil from $20 to $72 a barrel and he predicted continued strength.

Iran's President Mahmoud Ahmadinejad said last week his nation produced enriched uranium that could fuel a nuclear reactor. The U.S. says the program is a front to develop nuclear weapons. It says it will ask the UN Security Council to take harder measures against Iran, including sanctions. The media also speculate that the US will strike Iran's nuclear facilities. US president George W. Bush said ��all the alternatives are on the table'.

Iran is the world's second largest oil producer with an output of 3.8 million barrels per day, second only to Saudi Arabia. Almost a quarter of the world's oil flows through the Straits of Hormuz, a narrow waterway between Iran and Oman at the mouth of the Persian Gulf.

Therefore, analysts say that any change in Iran's nuclear issue will affect the oil price in the world. If the issue deteriorates to a certain level, they don't rule out the possibility of a price up to 75 dollars a barrel for crude oil.

In addition, Africa which produces about 10% of the total amount of world oil has seen unstable factors in its geopolitical arena recently. This makes people nervous. Due to militant attacks in Nigeria, Africa's biggest oil producer, has slashed output by 26 percent to 641 thousand barrels per day.

Besides, as the summer comes, the US peak oil consumption period has come, oil supply is in demand. Statistics show that the US storage of oil has decreased by 3.9 million barrels, to 207.9 million barrels, a decrease for six consecutive weeks.

The oil price is increasing substantially. According to the American Automobile Association, New York's gas price on 15th was 2.9 US dollars, 40 cents up that of last month. In futures market, New York dealers sold their gas by the end of 17th by 2.1697 US dollars the highest since last September.

An analyst with New York Futures says, in the foreseeable future, the oil market will continue to be bullish unless obvious economic restructuring or political changes take place.

By People's Daily Online