High oil prices: Another reason to hope for world peace.
Oil rebounds on Nigeria threat, supply concernsNEW YORK (AP) -- Oil futures rose back above $131 Wednesday, recovering from early losses as threats against Nigerian oil facilities led investors to at least temporarily set aside concerns about falling U.S. gas demand.
At the pump, meanwhile, gas prices rose to a new record over $3.94 a gallon.
Light, sweet crude for July delivery rose $2.18 to settle at $131.03 on the New York Mercantile Exchange, after spending the morning swinging between gains and losses. At its lows, oil was down nearly $3 a barrel, compounding a $3.34 drop in crude on Tuesday. It passed $135 for the first time last Thursday.
Although prices rebounded sharply Wednesday, investors are still contending with a growing belief that U.S. demand for gas is falling in response to prices that already average more than $4 in 11 states and the District of Columbia. The national average price of a gallon of regular gas rose 0.7 cent overnight to a new record of $3.944, according to AAA and the Oil Price Information Service.
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