LONDON, April 20: World oil prices fell on Thursday on profit-taking after they had reached historic peaks above $74.0 in London and $72.0 in New York.

In London, the price of Brent North Sea crude for June delivery hit a record high of $74.22 per barrel owing to low stocks of gasoline in the United States and tensions over Iran’s nuclear programme, dealers said.

New York’s benchmark contract for light sweet crude for May delivery hit an all-time peak of $72.49.

At about 1600 GMT Brent stood at $72.50 in electronic deals, down $1.23 on Wednesday’s close. New York crude was at $70.90 in pit trading, a loss of $1.27.

But analysts saw the price falls as a temporary move, before a renewed push towards $75.0 per barrel.

“There is no obscuring the big picture of rapidly dwindling (gasoline) stock levels, accelerating demand and the growing likelihood of a supply crunch in the not too distant future,” Barclays Capital analyst Kevin Norrish said.

“Geopolitical tensions also continue to prove a key driver behind the strength in oil prices.

“The escalation of the dispute between Iran and Western countries over Irans nuclear programme, have raised fears of a potential cut in Iranian production should a peaceful compromise not to be reached,” he added.

Meanwhile regarding US stockpiles, the US Department of Energy had said on Wednesday that US gasoline (petrol) inventories fell by 5.4 million barrels last week, twice analysts’s forecasts and ahead of the peak demand season for motor fuel.

The fall in gasoline stocks comes ahead of the driving season in the US, which sees American drivers take to the roads on vacation beginning in May.

The head of the International Energy Agency told AFP late Wednesday that market speculation has amplified oil price spikes but that the root cause of high prices is the lack of a production safety cushion.

“The market is perfectly well supplied at the moment but spare capacity is very limited,” IEA executive director Claude Mandil said.—AFP