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Oil prices flat to firmer as US gasoline reserves still a concern
AFP
SINGAPORE
Petroleumworld.com 06 11 07Oil prices were flat to higher in Asian trade Monday, with US gasoline (petrol) supplies still the main issue being closely watched by the market, dealers said.
At 2:40 pm (0640 GMT), New York's main contract, light sweet crude for July delivery, was up 23 cents to 64.99 US dollars a barrel from 64.76 dollars in late US trades Friday.
Brent North Sea crude for July was flat at 68.60 dollars.
"I think the gasoline market will continue to be a factor," said Victor Shum, an analyst with energy consultancy Purvin and Gertz in Singapore.
"The gasoline market will continue to be tight in the summer and traders will continue to watch gasoline demand and US refinery production," he said.
US gasoline reserves are closely watched at this time of the year because many Americans take to the road for their vacations, driving up demand in the world's biggest energy user.
While gasoline reserves showed an increase in the latest US government report, the market is concerned by lower capacity utilisation rates in US refineries, dealers said.
US gasoline reserves rose by an unexpected 3.5 million barrels to 201.5 million barrels in the week to June 1. The increase was more than double analyst forecasts for a gain of 1.6 million barrels.
US crude oil reserves rose 100,000 barrels to 342.3 million barrels last week, lower than analysts' forecast of an increase of of 250,000 barrels.
Developments in Nigeria remain in focus as another kidnapping in the country's oil-rich southern region renewed concerns about stability in Africa's biggest crude producer.
Civil unrest is estimated to have cut Nigeria's oil output by 25 percent.
Some 190 foreigners, mostly in the oil sector, have been abducted. Most of them have been released after spending days and even weeks in captivity.
AFP 11 0646 GMT 06 07
Copyright© 2007 AFP. All Rights Reserved.
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