Global oil prices have eased slightly from a record over $US122 ($NZ155) a barrel on Tuesday, but were trading yesterday at more than $US120.
Oil has more than doubled in price during the past year.
As New Zealand and United States motorists shudder from paying $NZ2 a litre and $US3.50 a gallon, respectively, global prices had climbed on Monday and Tuesday due to the weakening US dollar and supply concerns from Africa and the Middle East.
Fuel prices of $2 have become a major concern for motorists, the transport sector and Automobile Association, while the Government has softened its stance on the introduction of regional roading taxes at the pump head.
Global oil prices reported yesterday by Reuters were US crude up $1.87 at $121.84 a barrel, after touching a record $122.73 earlier and London Brent crude up $2.32 at $120.31 a barrel, after hitting a record $120.99.
ASB chief economist Nick Tuffley said some future pricing pressure had come off pump prices with the Government delaying the regional tax and pushing out the petroleum component of its emissions trading scheme two years, from 2009 to 2011.
"It is the same triggers, with supply concerns back in again - rebels in Iraq, attacks on Nigerian pipelines and Iran [resisting the West over its nuclear programme].
"You have to question the willingness of Opec [the Organisation of the Petroleum Exporting Countries] to boost oil production, because supply and demand is pretty tight," Mr Tuffley said.
Opec has signalled it will not increase output, citing speculation in the market by commodity investors as in part to blame for much of the pricing volatility.
Mr Tuffley acknowledged speculators were one influence, driving prices up when they all rushed in to buy.
But if Opec opened up supply the tight margin for speculation would diminish.
While the medium-term trend was increasing oil prices, there were expectations more oil would be retrieved and transported to refineries, but this "would not be happening overnight".
US stocks fell on Monday after crude oil set another record high and concern grew Bank of America might not complete a proposed buyout of ailing lender Countrywide Financial Corp, Reuters reported.
Oil rose sharply after Iran ruled out suggestions for halting the development of its nuclear capabilities in exchange for incentives.
Energy shares gained as oil hit $120.21 a barrel before slipping back to $119.60.
