July 06, 2007	Friday	Jamadi-us-Sani 20, 1428

LONDON, July 5: World oil prices pulled back from 10-month highs on Thursday after news that US energy reserves rose across the board last week, but supply concerns lingered over key producer Nigeria, traders said.

In London, Brent North Sea crude for August delivery showed a gain of 89 cents at $73.94 per barrel in electronic deals, after earlier striking $74.32 -- which was last seen on August 15, 2006.

New York’s main oil futures contract, light sweet crude for delivery in August, stood 21 cents higher at $71.20 in US floor trading. The contract earlier hit $72.35, the highest point since August 25, 2006.

Prices are not far off their record highs above $78 per barrel, that were struck in July and August 2006 on concerns about tight supplies and geopolitical instability in key producing regions.

The US Department of Energy (DoE) said on Thursday that American gasoline (petrol) inventories jumped by 1.8 million barrels to 204.4 million barrels in the week ending June 29. That was more than triple market expectations for a gain of 500,000 barrels.

US crude oil stockpiles leapt by 3.1 million barrels to reach 354 million barrels last week. The figure wrong-footed analysts who had forecast an average drop of just 200,000 barrels.

“The builds across the board are bearish relative to expectations,” noted Citigroup analyst Tim Evans, in reference to the fact that higher US energy supplies took the edge off earlier oil price gains.

US gasoline reserves are running about 4.7 per cent below their level at the same stage last year, according to the DoE, whose report was issued a day later than normal due to the US Independence Day holiday on Wednesday.

Demand for gasoline soars during the so-called driving season in the United States because many Americans hit the roads for their summer vacations.

Earlier on Thursday, crude futures has rocketed to fresh ten-month pinnacles in London and New York amid unrest in key crude producer Nigeria and jitters about tight US gasoline supplies.

“Crude futures pushed even higher earlier on Thursday, extending gains from Wednesday,” said Sucden analyst Andrey Kryuchenkov.

He added: “There was more news about fresh violence in Nigeria.”—AFP