Commodities Find Oil Surging to Record High on North Korea Jitters

News that North Korea had fired seven missiles into the Sea of Japan sent crude oil prices soaring to a record $75.40 a barrel Wednesday.  A dispute over Iran's nuclear program and speculation that U.S. gasoline inventories were falling also contributed to the price increases.

"The market is struggling with where to put the North Korean missile test," said Peter Beutel, president of energy consultant Cameron Hanover in New Haven, Connecticut. "Any time there is uncertainty, people buy oil."  Crude oil for August delivery settled $1.26 higher at $75.19 a barrel on the New York Mercantile Exchange, the highest close for a contract closest to expiration since 1983, when oil futures began trading on the exchange. Earlier crude touched $75.40, setting a new intraday record.

"The most important news is the missile test overnight," which also has implications in Iran, said Rob Laughlin, a senior broker at Man Financial in London. "Some people in Iran had a big smile this morning."  Oil has risen 23 percent in New York this year partly on concern that a confrontation over Iran's nuclear research would interrupt Iranian oil supplies.  Iran has until July 12 to stop enriching uranium or risk UN sanctions.