960429

Oil prices lower

as US gasoline slips

LONDON: World oil prices lost ground on Tuesday, led lower by a weaker market for gasoline futures in the U.S.

London July futures for international benchmark Brent crude were down 12 cents at $19.11 a barrel by 1500 GMT.

New York gasoline futures lost more than 1.5 cents per gallon in a fresh bout of selling as prices subsided from the five-year highs reached in April.

Dealers said U.S. refiners now appeared less worried about the prospects for a summer shortage of gasoline despite expectations of the need for record imports to cover growing demand.

But markets otherwise were hamstrung by uncertainty over next week's OPEC meeting and the timing of first Iraqi exports after last week's oil-for-food agreement between Iraq and the United Nations.

Dealers were reluctant to take new positions ahead of mid-year Organisation of the Petroleum Exporting Countries meeting which starts on June 5.

They remained uncertain whether OPEC would address the question of how to incorporate the return of some 650,000 barrels per day (bpd) of Iraqi exports or wait until the timing of sales becomes clearer.

Former OPEC Secretary General Subroto said on Monday the talks could come too soon to accommodate Iraq's reentry into the market and that a later extraordinary meeting might be appropriate.

Crude prices in dollars a barrel at 1600 GMT:

May 28 May 24 (close)

Dated Brent $19.58 $19.40

IPE London Brent futures (July) $19.00 $18.90

NYMEX light crude futures (July) $21.16 $21.32-Reuter