Oil prices little changed on eve of US energy reserves report

NEW YORK (AFP) - Oil prices ended mixed yesterday, but remained near historic highs amid frenzied speculative buying and persistent concerns over tight US fuel supplies, traders said.

New York's main oil futures contract, light sweet crude for delivery in August, closed up 24 cents at 74.15 dollars per barrel, and not far off highs struck last year.

Brent North Sea crude for August delivery settled down 24 cents at 77.33 dollars, after earlier spiking to 78.40 dollars, close to the record high of 78.64 dollars registered early last August.

Crude futures remained generally high, "extending gains from Friday and once again pushing above 78 dollars per barrel in London," said Sucden analyst Michael Davies.

"Just as at the end of last week, there is a continuous inflow of fresh speculative and fund money supporting the prices," he said.

Traders said Brent oil prices had gained support from planned maintenance work in the North Sea, which has exacerbated fears of a supply crunch."

Traders are also focusing on tight supplies of gasoline or motor fuel in the United States amid the peak-demand driving season, when many Americans take to the roads for their summer holidays.

The US Department of Energy had said last week that gasoline reserves climbed 1.2 million barrels in the week ending July 6, beating forecasts of a gain of 825,000, but they were still 3.8 percent lower than a year earlier.

"US refineries are rushing to increase gasoline output during the summer driving season," Davies said.

Prices were also underscored by ongoing geopolitical jitters in Nigeria, which is the world's eighth biggest crude exporter and the largest producer in Africa.

Crude futures had rallied strongly last week after the International Energy Agency raised its 2008 forecast for oil demand by 2.5 percent to 88.2 million barrels a day.

Prices are now within close range of their historic high points.

The Brent oil price touched 78.64 on August 7, 2006, shortly after a pipeline spill forced British energy giant BP to close production from Prudhoe Bay, which is the biggest oil field in the United States.

And New York crude had leapt to 78.40 dollars on July 14, 2006, when violence erupted between Israel and Lebanon, sparking fears over stability in the oil-rich Middle East.