July 07, 2006	Friday	Jumadi-ul-Sani 10, 1427

LONDON, July 6: World oil prices fell on Thursday after official data revealed a jump in stockpiles of US motor fuel last week, analysts said.

But prices remain close to a record high point reached in New York on Wednesday amid geopolitical concerns.

New York's main contract, light sweet crude for delivery in August, dropped 39 cents to $74.80 per barrel in pit trading.

In trading on Wednesday, the contract had hit an all-time record $75.40 per barrel. That exceeded the previous intra-day peak of $75.35, set on April 21.

In London deals on Thursday, Brent North Sea crude for August delivery slid 23 cents to $73.75 per barrel in electronic trading.

Brent crude had touched $74.22 per barrel the day before -- marking the highest level since May 2 when it hit a record $74.97.

All eyes on Thursday were on the latest weekly snapshot of US energy stockpiles, published a day later than usual owing to the 4th of July celebrations.

US crude oil inventories dropped over the past week while gasoline, or petrol, supplies showed a surprise increase, the Department of Energy said.

The DoE inventories report showed crude oil reserves fell much more heavily than expected, dropping 2.4m barrels to 341.3m over the week ended June 30.

Analysts had forecast a decline of just 650,000 barrels.

Gasoline reserves, which are under scrutiny because of peak US demand during the driving season, showed an unexpected rise of 700,000 barrels to 213.1 million.

Demand for gasoline rose 1.1 per cent from the prior week, to 9.645 million barrels per day, an all-time high.

“It was extremely bearish (for prices) to see gasoline stocks build by 700,000,” Societe Generale analyst Deborah White said.—AFP