An Iran official earlier in the day reiterated the country's intention to keep enriching uranium, while U.S. Undersecretary of State Nicholas Burns said he believed European governments will agree to sanctions against Iran.

"The trend is still up," said BNP Paribas commodity futures analyst Tom Bentz. "Unless something changes, I don't see anything out there that's going to cause any big drops."

Pump prices crawled higher as well, nearing the record highs seen in early September after hurricane Katrina struck the Gulf of Mexico coast and the region's oil facilities. Yesterday, the average cost of a gallon of regular, unleaded gasoline was $2.92, up 35 cents from a month ago, according to AAA's daily fuel gauge report. U.S. drivers are now paying about 14 per cent more to fill their tanks than a year ago.