Oil prices settle above $145

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By Adam Schreck ASSOCIATED PRESS

NEW YORK | Oil prices raced above $145 a barrel for the first time Thursday as traders added to their bets on the commodity ahead of the long holiday weekend.

There was little good news for Americans hitting the road for the July Fourth holiday, as gas prices set their own record near $4.10 a gallon.

Light, sweet crude for August delivery surged $1.72 to settle at a record $145.29 on the New York Mercantile Exchange. Earlier in the trading session, the last of the week, the contract rose to $145.85 a barrel, also a new high.

Oil has set trading or closing records in each of the past six trading sessions.

Thursday's surge in oil was propelled by a report of lower crude stockpiles in the United States, lingering concerns about conflict with Iran and comments by Saudi Arabia's oil minister suggesting his country would not boost production.

Russian energy giant Gazprom, meanwhile, forecast that the price of oil would "very soon" rise to $250 per barrel.

"We expect that the price of oil will reach 250 dollars per barrel very soon," Gazprom chief executive Alexei Miller told reporters during a visit to energy-rich Azerbaijan.

Mr. Miller also said he expected Russia's oil production to level off in the next few years, further widening the gap between global supply and demand. Russia is the world's second-biggest producer and exporter of oil after Saudi Arabia.

U.S. Treasury Secretary Henry M. Paulson Jr. warned Thursday that rising oil prices are likely to prolong the world economic slowdown.

Speaking at a London press conference, he said there will be no quick fixes to calm soaring oil prices.

"I think that the oil prices are a strong head wind and at this level, they have got a high risk that they are going to prolong the slowdown," Mr. Paulson told reporters at a London press conference as he wound up a European tour.

Saudi Arabia's oil minister, Ali Naimi, said Thursday that his country has no immediate plans to boost production despite record prices.