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Oil prices gain in Asian trade
AFP
SINGAPORE
Petroleumworld.com 06 29 07
Oil prices gained in Asian trade Friday, a day after breaching 70 dollars for the first time in 10 months amid tight gasoline supplies in the United States, dealers said.
At 2:42 pm (0642 GMT) New York's main oil futures contract, light sweet crude for delivery in August, was up 13 cents to 69.70 dollars per barrel from 69.57 dollars per barrel in late US trades.
Brent North Sea crude for August delivery gained eight cents to 70.60 dollars.
New York prices breached the 70 dollar mark in US trades Thursday, soaring to 70.52 dollars at one point, its highest level since August 28, 2006.
Underpinning prices were concerns over US gasoline (petrol) stockpiles amid the peak demand summer driving season when many Americans take to the roads for their annual holidays.
Tobin Gorey, a commodities strategist with Australia's Commonwealth Bank, said US refinery output has lagged behind the demand.
"Because it is so late and we are well into summer driving season... it is genuinely very hard (for the refineries) to catch up," he said.
The US Department of Energy (DoE) reported Wednesday that American gasoline stockpiles fell by 700,000 barrels to 202.6 million barrels in the week ending June 22, against market expectations of a gain of 1.0 million barrels.
Gasoline reserves are running well below the lower end of the average range for this time of year, the DoE added in its weekly market update.
The United States is the world's biggest energy user and its consumption patterns as well as stockpiles are closely watched by the international market.
AFP 29 0655 GMT 06 07
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