Estimates indicate that more than 40 million Americans will travel an approximate 50 miles (80 kilometers) on Independence Day holiday on July 4th. The New York Mercantile Exchange was closed for the U.S. holiday, and doubtlessly, lack of Nymex trading kept prices from going higher, as oil prices slipped on Monday, but continued to hold above US$73 as Brent futures fell to US$73.39 a barrel on the ICE Futures exchange.
Gasoline demand in the U.S. continues, undeterred by soaring pump prices. This is evident by the fact that over the past four weeks, daily gasoline demand was up 0.9% from a year ago levels. As per a report released by the U.S. government, gasoline inventories shrank last week for the first time in more than two months, triggering worries of a supply shortage ahead of the July Fourth holiday. Oil prices are up about 30% higher than a year ago levels and several factors influence this rise:
Strong demand and geopolitical uncertainty - such as violence in Nigeria, the war in Iraq and Iran's showdown with the West over its nuclear program. Nagging concerns over Iran's nuclear defiance have been exerting pressure on prices in recent weeks.
05-Jul-06 
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