Washington ? When a tropical depression in the Caribbean was upgraded to Tropical Storm Dennis this week, crude oil prices immediately began climbing on the New York Mercantile Exchange.

Dennis came right behind Tropical Storm Cindy, which made landfall Tuesday in Louisiana and hindered oil production and refining. Traders said uncertainty over both storms helped to push oil prices to new highs. Crude oil for August delivery rose $1.69 to settle at $61.28 a barrel and establish a new record. The previous closing high was $60.54 set June 27.

Traders feared that at least one of the four tropical depressions off the U.S. Atlantic and Gulf coasts could become a hurricane that would delay oil deliveries, damage offshore oil rigs and threaten onshore refineries. That means temporary oil shortages are possible, a fear that drives up fuel prices.

“Clearly, we are in a situation where the likelihood of us entering a supply-tightness scenario has increased, and that’s what this market is playing off,” said Kyle Cooper, an oil analyst with Citigroup Inc. in Houston. “Fear and psychology are major market factors.”