Oil prices ease in Asian trade following US gains

SINGAPORE (AFP) - Oil prices were easier in Asian trade Thursday after sharp gain overnight following an unexpected decline in US gasoline (petrol) inventories, dealers said.

At 10:25 am (0225 GMT), New York's main contract, light sweet crude for August delivery, dipped four cents to 75.01 dollars a barrel from 75.05 dollars in late US trades Wednesday.

Brent North Sea crude for September was down nine cents to 76.67 dollars.

The August Brent contract had struck 78.40 dollars Monday, within sight of of its all-time high of 78.64.

US gasoline inventories fell 2.3 million barrels in the week ended July 13 to 203.3 million barrels, leaving them 4.5 percent below their year earlier levels and compared with analyst forecasts for a rise of 700,000 barrels.

Gasoline stockpiles have been a focus for the market because of high demand during the summer holidays when Americans take to the roads for their holidays.

Crude oil stockpiles fell 500,000 barrels and distillates (diesel and heating oil) were down 200,000.

Analysts said prices are expected to remain supported by tight supplies.

"Contrary to market expectations, US gasoline inventories ... fell by 2.3 million barrels last week," the Commonwealth Bank of Australia said in a research note.

"US gasoline prices rose in response to the (DoE) report and crude oil prices were pulled higher."

Oil prices have risen strongly since last week when the International Energy Agency raised its 2008 forecast for oil demand by 2.5 percent to 88.2 million barrels a day.

The IEA has called for the OPEC producers' cartel to pump more crude, notably during the ongoing driving season.

However, the Organization of the Petroleum Exporting Countries has repeatedly insisted it does not plan to raise output.

Leading OPEC member Iran said Tuesday there was no need for an emergency meeting of the cartel to discuss high oil prices, saying the market was already well-supplied with crude.