In the energy market Tuesday, crude for June delivery roared to new intraday and closing records, finishing at $121.84/barrel, up $1.87, after an intraday peak of $122.73. June reformulated gasoline gained 6 cents, to $3.12/gallon.

The causes of rising oil prices “have been chronicled repeatedly here — demand from China and India, the falling dollar making oil an inflation hedge, speculation, OPEC supply restraints, supply threats in Iran, Iraq and Nigeria, and refinery bottlenecks in the U.S.,” summarized John Kilduff, of MF Global.

Unlike gold, which has yet even to approach its alltime inflation-adjusted high, oil is now well “above the $101.70 peak hit in April 1980, the year after the Iranian revolution,” said Kilduff.

“Now we are in unexplored territory,” Kilduff said. “Add to it, the significant recent supply disruptions in Nigeria and additional inflationary pressures that surely must be the result of a loose monetary policy and the path of least resistance is higher still for energy markets.”

“Spare oil capacity is also a large factor for the rise in prices,” wrote James Williams, of WTRG Economics. “Spare capacity is limited — under 2 million barrels per day, which means the oil production industry is at about 97% utilization.”