SINGAPORE - Oil prices slipped yesterday as traders took profits after a weekend with no supply disruptions, and looked ahead to a recovery in US refinery use that may boost fuel production.
London Brent crude traded US22c lower at US$71.19 a barrel, after gaining US89c at the endof last week. US light crude eased US23c after a US$1.11 rally to the highest settlement since August 2006.
Oil traders worried about geopolitical supply risks saw London's Heathrow airport and New York's JFK terminal reopened yesterday after bomb scares, easing concern over further terror attacks following an explosion at a Scottish airport on Sunday and failed car bombing attempts in London last week.
"We can see some profit taking after short covering brought the market up to US$71," said Ken Hasegawa at Himiwari CX. "The market will be rangebound until the US holiday."
The US Independence Day holiday on July 4 will delay until Friday weekly US inventory data, in which some traders expect to see higher US fuel production after several plants returned from maintenance.
ConocoPhillips planned to begin a restart of a petrol-making unit in Texas on Friday, while two crude units at a BP refinery in Indiana will reach full rates within two to three weeks after a fire slashed output in April.
A series of outages in the world's top consumer has helped drive down petrol stockpiles during peak summer demand, though crude stockpiles have risen to nine-year highs despite Opec production cuts.
Brent oil prices are up 17 per cent this year after disruptions to Nigerian supplies, Opec supply curbs and worries over Iran's nuclear dispute.
