Crude oil inches towards $72

Crude oil traded near $72 a barrel in New York amid speculation that US refinery glitches are curbing gasoline production.

Stockpiles of gasoline may have fallen 2.3 million barrels last week, according to analysts surveyed by Bloomberg News. Chevron Corp said yesterday its largest refinery is still at half capacity after a fire.

"The downstream sector in the US has been one of the main concerns,'' said Ehsan Ul-Haq, head of research at PVM Oil Associates in London. "But gasoline demand will end soon, and not support crude prices in the next few weeks.''

Crude oil for October delivery was at $72.04 a barrel, up 7 cents, on the New York Mercantile Exchange at 10:39 am in London. Oil has jumped 3.2 per cent in the past three sessions.

In London, Brent crude oil for October settlement was at $71.07 a barrel, up 12 cents, on the ICE Futures Exchange.

It rose 33 cents yesterday, or 0.5 per cent, to $70.95 a barrel, the highest close since August 15.

"Although we know there'll be a downturn in demand, there are too many things propping the market up,'' said Rob Laughlin, a senior broker at MF Global in London. "I can't see OPEC giving us any more barrels even though there's pressure on them to do so.''