Oil prices slipped below US$74 a barrel on Monday, as a sell-off in gasoline futures spilled over into crude oil. Despite this dip in prices, strong demand and geopolitical uncertainty-the underlying pressures that recently drove prices higher, persist. Light sweet crude for August delivery dipped to US$73.61 a barrel on the New York Mercantile Exchange. Brent crude contract for August dipped on London's ICE Futures exchange to US$72.64 a barrel.
Last week saw oil prices rise, peaking to an intraday record of US$75.78 a barrel on Friday. The recent hike was fueled by concerns of a diplomatic standoff between the West and Iran, coupled with US government data that showed a rise in gasoline demand to 1.4% higher than year ago levels. Adding to the concerns is the arrival of the hurricane season in USA. Last year, Hurricanes Katrina and Rita swept rigs from their moorings in the Gulf of Mexico, shuttered production facilities and damaged refineries in Louisiana and Texas.
11-Jul-06 
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