Oil prices fell heavily today after another increase of US gasoline stocks helped to reassure traders there was enough fuel to meet demand over the US summer driving season.
Reference Brent North Sea crude for August delivery fell 61 cents to $26.38 a barrel.
In New York, light sweet crude August futures fell 27 cents overnight to $26.98, before publication of the weekly stock figures from the private American Petroleum Institute (API).
Royal Bank of Scotland commodities expert Mr Andrew Hartree said the market was now of the opinion that there was sufficient gasoline on the market to satisfy the thirsts of US motorists as they take to the road for vacations over the coming weeks.
With gasoline stocks "nearly 20 million barrels above where we were last year (and) demand failing to outshine last year particularly ... the market's already looking further ahead than gasoline (shortages) this summer," he said.
US gasoline stocks rose by another 3.28 million barrels last week to 222.85 million - 17.4 million barrels above levels a year ago and two million higher than 1999 levels, analysts said.
US crude stocks increased by 565,000 barrels to 313.47 million, the API said.
AFP