Friday, September 8 2006 14:17 Hrs (IST) - World Time -

Singapore: "Oil prices fell further in Asian trade today as supply concerns eased after the US Government reported an unexpected rise in gasoline (petrol) stocks, dealers said.

At 10:55 am (0825 IST), New York's main contract, light sweet crude for October delivery, was down 34 cents t 66.98 dollars a barrel from its close of 67.32 dollars in the United States yesterday (Sept 7, 2006) .

Brent North Sea crude for October shed 35 cents to 66.18 dollars.

"The oil market has hit a number of speed bumps and so pricing continues to slip based on the US inventory report, in particular the stocks build-up on the (oil) product side is bearish (for prices)," said Victor Shum, an analyst with energy consultancy Purvin and Gertz in Singapore.

US gasoline inventories increased 700,000 barrels to 206.9 million in the week to September one compared with forecasts for a fall of 900,000 barrels.

Gasoline stocks are now 6.6-percent higher compared with a year ago following the close of the US summer driving season.

"The data is bearish. Another build in gasoline, despite fairly good demand, is quite bearish," said AG Edwards analyst Bill O'Grady.

Crude oil stockpiles fell 2.2 million barrels in the week to 330.6 million, compared with a forecast a decline of 1.5 million barrels.

Oil prices have slumped to multi-month lows in recent days owing to easing supply concerns, notably over Iran the world's fourth biggest producer of crude.