August 04, 2006	Friday	Rajab 8, 1427

LONDON, Aug 3: World oil prices turned weaker on Thursday as trader concerns eased over a tropical storm in the US Gulf Coast where many American oil rigs and platforms are based, dealers said.

New York's main contract, light sweet crude for delivery in September, dipped 44 cents to $75.37 per barrel in electronic deals before the official opening of the US market.

In London, Brent North Sea crude for September delivery lost 26 cents to $76.63 per barrel in electronic trading.

Crude futures had spiked on Wednesday as traders fretted over the threat of hurricanes in the US Gulf of Mexico. Oil prices reached 77.47 in London and 76.50 in New York, both the highest levels since July 18.

Crude oil futures were lower after Tropical Storm Chris weakened and according to latest forecasts is no longer expected to turn into the season's first hurricane that would have posed a real danger to oil and gas infrastructure in the Gulf of Mexico, Sucden analyst Michael Davies said.

According to the latest update from the US National Hurricane Center, the storm was “weakening in a hurry” and was not expected to reach hurricane strength.

Wednesday's price gains also followed news that US crude oil and gasoline reserves fell last week and as headlines suggested no let-up in the Israeli-Lebanese crisis.

Concerns that fighting in the area might spark a wider conflict in the Middle East caused oil prices to hit to all-time highs above $78 last month.—AFP