Crude oil continued to trade above $75 a barrel Thursday, a day after North Korean missile tests exacerbated concerns about supply.

Crude oil for August delivery closed down 5 cents at $75.14 a barrel in trading on the New York Mercantile Exchange. Crude had reached an intraday record of $75.40 a barrel on Wednesday after North Korea test-fired at least seven missiles. Traders on Thursday cited a U.S. government report showing an unexpected increase in gasoline inventories for the slight easing in the price of oil, though the price remained about 23 percent higher this year, partly on worries that a confrontation over Iran's nuclear research would lead to an interruption of oil supplies from the Islamic republic, one of the largest producers.

Now, North Korean missile tests are intensifying oil supply concerns, said Dmitry Baron, the director of research at Aladdin Capital Management in Stamford, Connecticut.

"The resurgence of North Korea in the world's media headlines, while it does not directly affect the oil markets, is definitely contributing to the general sense of insecurity and instability," Baron said. "At the same time, the defiance of North Korea is undoubtedly further emboldening Iran in its confrontation with the world community over its nuclear research. And here, in Iran, we are dealing with a direct possibility of significant oil disruptions." Oil analysts have raised their forecasts for this year as demand increased and threats to output loomed in the Gulf, Nigeria and the Gulf of Mexico.

For the year, crude oil was expected to average $67.25 a barrel, $9.25 higher than predicted just six months ago, according to the median forecast in a survey of 28 analysts conducted June 19 through June 29. The figure is $10.55 above last year's record average on the New York Mercantile Exchange.

Political tension is pushing up the price of oil, but so is demand. World consumption will rise by 1.5 percent to 84.9 million barrels a day, led by China and the United States, according to the International Energy Agency in Paris.

"More and more we are confident that prices will hit or exceed our forecast," said Kevin Norrish, a director of commodities research for Barclays Capital in London, who expects oil to average $68 a barrel in 2006. "In the short term things look tight, and in the longer term there are a lot of question marks."

Analysts have been playing catch-up with surging oil prices. They started this year with a forecast of $58 a barrel, below the $67.13 average price through the first six months. While raising estimates the past 24 months, analysts lagged behind oil's gains.

The International Energy Agency, adviser to 26 oil-consuming countries, said in a June 13 report that supply from outside the Organization of Petroleum Exporting Countries is coming more slowly than expected. The forecast for a 1.5 percent increase in global demand compares with a 1.3 percent gain last year and a 4.1 percent jump in 2004.

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Gene Laverty reported from Calgary, Alberta.