LONDON, May 26: World oil prices stabilised on Friday as the United States geared up for the start of its driving season, when demand for motor fuel hits a peak as Americans begin their summer vacations.

New York’s main contract, light sweet crude for delivery in July, climbed 18 cents to $71.50 per barrel in pit trade.

In London, Brent North Sea crude for July delivery eased three cents to $70.68 per barrel in electronic deals.

“Oil futures were higher, continuing Thursday’s bull-run on strong US growth figures” and before the start of the driving season, analysts at the Sucden brokerage firm said.

Crude futures had rebounded strongly above $70 on Thursday, also because of the simmering diplomatic crisis over Iran’s nuclear ambitions.

Both contracts had closed up nearly one and a half dollars, after shedding nearly $2 on Wednesday on US government figures that showed robust supplies of gasoline heading into the annual summer driving season.

Motor fuel stocks are being closely watched ahead of this weekend’s US Memorial Day break, when the roads start filling up with holidaymakers.

Oil prices were being supported also by tensions over Iran, the world’s fourth biggest producer of crude.

“The Iranian issue, even though it is off the front pages, remains there and will provide support to high prices,” said Victor Shum, an analyst with energy consultancy Purvin and Gertz in Singapore.

“It will set somewhat of a high floor for prices,” he said.

The fear is that Iran could halt exports should the United Nations impose sanctions on the Islamic republic.—AFP