Oil price hovers at nine-month peak in New York

LONDON: The price of oil traded close to a nine-month peak in New York on Monday owing to concerns about fuel supplies in the United States where the summer driving season is underway.

Prices found further support on Monday from lingering supply tensions over Nigeria and the crude-rich Middle East, traders said.

New York's main oil futures contract, light sweet crude for delivery in July, soared as high as $68.25 a barrel, before pulling back to $67.84 or 16 cents below Friday's close.

The contract had hit $68.30 late on Friday, which was the highest price since September 6, 2006. The same day, Brent North Sea crude for August delivery had struck $71.88, which was last seen on August 28, 2006.

In late morning trade on Monday, Brent crude drifted 30 cents lower to $71.17 per barrel.

Oil futures had leapt last week as traders focused on low US gasoline reserves during the ongoing peak-demand driving season, when many Americans take to the roads for their summer vacations.

"Gasoline is going to be tight this summer," said Calyon analyst Mike Wittner.

Last week, prices had gained five per cent in value in New York and four per cent in London.

Prices surged higher after the US Department of Energy revealed that US gasoline inventories were unchanged at 201.5 million barrels in the week ending June 8, ending a five-week streak of gains.

That confounded market expectations for a large increase of 1.5 million barrels of US gasoline.