Oil dips as US stockpiles seen rising

Oil prices dipped but held above $69 today as an expected rise in gasoline stockpiles in the United States weighed against Opec…

Oil prices dipped but held above $69 today as an expected rise in gasoline stockpiles in the United States weighed against Opec supply curbs and worries over Iran's nuclear dispute.

London Brent crude, seen as more representative of the global market, was down 23 cents at $69.33 a barrel earlier this morning after a 96-cent rally yesterday

US crude fell 18 cents to $65.79 after a $1.21 rebound.

US gasoline inventories were seen rising another 1.9 million barrels last week on higher refinery runs and heavy imports, offsetting concerns about summer fuel supplies in the world's top consumer.

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The US Senate will begin debating legislation this week to cut gasoline demand by increasing auto fuel economy standards.

Sentiment on crude supply remained supportive as top oil exporter Saudi Arabia told Asian and European customers supplies would continue at reduced levels in July, after some analysts predicted Opec would begin easing output restrictions to take advantage of prices near $70.