Saturday, May 27 2006 11:27 Hrs (IST) - World Time -

New York: Oil prices stabilized today (May 27, 2006) as the United States geared up for the start of its summer driving season, when demand for gasoline hits an annual peak in the world's biggest energy-consuming nation.

New York's main contract, light sweet crude for delivery in July, crept up five cents to close at 71.37 dollars a barrel.

But in London, Brent North Sea crude for July delivery eased 12 cents to settle at 70.59 dollars a barrel.

Both markets closed early today ahead of a long weekend on both sides of the Atlantic. In the United States, Monday is Memorial Day, the traditional start of the summer vacation season.

Despite the markets' quieter tone at the end of a volatile week, BMO Nesbitt Burns analyst Bart Melek said investors should brace for more choppy trade in the week ahead.

"We continue to see considerable upside risk for oil as the hurricane season starts and more aggressive action is taken to curtail Iran's nuclear ambitions," he said.

"Gasoline also rose for the third day this week on Thursday ahead of the start of the peak US driving season, which stretches from the Memorial Day weekend to Labor Day (on September 4)," Melek added.

A key focus for the markets next week will be a meeting Thursday in Venezuela of oil ministers from the 11 members of the Organisation of Petroleum Exporting Countries.

Analysts expect the OPEC countries, for now, to maintain their total production quota of 28 million barrels a day.