Oil breaks through record $75

Continued fears over Iran and Nigerian supplies, reports of gasoline shortage in the U.S. lead to 2 percent jump.

NEW YORK – Oil smashed through record highs Friday, cruising past $75 a barrel on continued fears of a supply disruptions in Iran and Nigeria and reports of spot gas shortages on the U.S. East Coast.

U.S. oil for June delivery reached $75.35, up $1.66 in afternoon trading on the New York Mercantile Exchange, before easing back to $75.05 around 2:30 pm ET. The May contract expired Thursday at $71.95.

Oil has been hitting record highs in recent sessions, unadjusted for inflation, on supply worries fed by fears of a confrontation with Iran, the world’s fourth-biggest producer. But it’s also within sight of inflation-adjusted highs of around $80 a barrel set in the late 1970s and early 1980s following the gas crisis and the Iranian revolution.

Gasoline supplies have been watched especially closely the last few weeks as the U.S. gears up for summer driving season.

CNN/Money