LONDON, May 25: World oil prices firmed on Friday as traders looked once again to tight US motor fuel reserves ahead of the peak-demand US driving season which starts this weekend, analysts said.
Further price support came from renewed tensions over the contested nuclear programme of oil producer Iran and following more kidnappings in Nigeria, Africa's biggest exporter of crude, they added.
Brent North Sea crude for July delivery rose eight cents to $70.80 per barrel in electronic deals.
New York's main oil futures contract, light sweet crude for delivery in July, gained 70 cents to $64.88 a barrel in floor trading.
London's Brent crude had on Thursday struck an intra-day high of $71.80, last seen on August 28, 2006.
Traders are preoccupied with gasoline before the US peak-demand driving season starting this Memorial Day weekend, when Americans begin taking to the roads for their summer holidays.
The market is also concerned that US refiners cannot convert enough crude oil into gasoline to meet demand in the coming months.
“There are still concerns over gasoline supplies. Refineries are still having issues,” said CFC Seymour analyst Steve Rowles in Hong Kong.
The US Department of Energy has revealed that stockpiles of gasoline rose 1.5 million barrels in the week ending May 18 -- but they remained “well below the lower end of the average range.” —AFP
