LONDON, July 3: World oil prices fell on Tuesday on profit-taking but the dip was likely to be brief amid strong concerns over low supplies of US motor fuel, traders said.

In London, Brent North Sea crude for August delivery slid 14 cents to $72.49 per barrel in electronic deals.New York’s main oil futures contract, light sweet crude for delivery in August, lost 19 cents to $70.90 in US floor trading.

Despite slipping, crude futures remain “well supported by concerns over low gasoline inventories in the US,” Sucden analyst Andrey Kryuchenkov said.

New York crude had struck a 10-month peak of $71.06 per barrel on Friday - the highest level since August 28, 2006 - on US supply concerns.

US gasoline (petrol) stockpiles fell 700,000 barrels to 202.6 million barrels in the week ending June 22, surprising the market which had expected a gain of 1.0 million barrels.

Gasoline reserves are in focus because of the US summer driving season when demand typically peaks as many Americans take to the roads for their annual vacations, particularly around Wednesday’s July 4 holiday.

The International Energy Agency (IEA), a policy adviser to 26 member countries, expressed disappointment on Monday that many refineries, particularly in the US, seemed unable to process sufficient quantities of crude oil.

IEA director Claude Mandil said the agency hoped for a “surge” in refinery activity within a few weeks.

“Looking ahead to this week’s (US) fuel inventory report, expectations are that we will openly see a slight rise in product inventories,” Sucden’s Kryuchenkov said.

“This will certainly not be enough to calm concerns about a tight gasoline market amid the peak demand summer driving season in the US and whether heating oil stocks can recover enough to cope with a cold winter.”—AFP