Friday, July 7 2006 10:54 Hrs (IST) - World Time -

Singapore: Oil prices eased in Asian trade today (July 7,2006) but remained near record peaks as robust gasoline demand and geo-political concerns over Iran and North Korea kept the market volatile, dealers said.

At 11:40 am (0910 IST), New York's main contract, light sweet crude for delivery in August, was at 74.79 down 35 cents from 75.14 dollars per barrel in late US trade.

The contract had reached a record intra-day high of 75.40 dollars per barrel in the United States on Wednesday after North Korea test-fired several missiles and Iran deferred talks over its controversial nuclear research program.

Brent North Sea crude for August delivery was down 21 cents at 73.87 dollars.

Demand is so strong especially during the US summer driving season that a report of higher US gasoline (petrol) inventories in the week ending June 30 had little impact on prices.

"The strong demand is there driving the market and prices remain high," said Victor Shum, an analyst at energy consultancy Purvin and Gertz in Singapore.

The DoE's weekly report showed gasoline reserves had risen an unexpected 700,000 barrels, but crude oil inventories fell sharper than expected.

"Strong gasoline demand during the peak-driving summer vacation season in Japan and China's voracious appetite for energy as well as geopolitical tensions over North Korea and Iran are helping drive prices higher," Shum said.