Oil Price Hits a Record Tuesday on Iran Rumors

Vienna, Austria, May 14, 2008--Concerns that Iran may cut oil production sent oil to a record price of nearly $127 per barrel yesterday.

Oil prices fell back Wednesday to $125.75.

Iranian officials denied production cuts were imminent but analysts say the Iranian economy is in disarray and the country needs all the petro dollars it can get.

Analysts said traders reacted quickly overnight to the news that Iran's government was considering cutting crude oil production.