New York, May 27: Oil prices slipped yesterday as traders apparently cast aside gasoline shortage fears, refusing to be spooked by a report of tight US crude oil and gasoline inventories. New York's benchmark light sweet crude for delivery in July fell 44 cents to 40.80 dollars a barrel, a drop of more than one dollar since it peaked at 41.85 dollars in electronic trade May 17. Brent North Sea Crude Oil for July delivery fell 36 cents to 37.08 dollars a barrel.

The market seemed to ignore Department of Energy report showing crude oil inventories in the week ended May 21 were unchanged from the previous week at 298.9 million barrels. Stocks of gasoline -- a major concern at the start of the peak summer demand period -- fell 700,000 barrels to 203 million, the government said.
In the approach to the first major summer holiday, the memorial day weekend, traders seemed to be realize that "gasoline prices are high but we are probably not going to be pushing our cars to the lake," he added. "Maybe the worst is over for the short run." Oil prices had climbed recently despite a pledge by Saudi Arabia to pump more oil.
Kuwait also supports a production hike by the organisation of petroleum exporting countries at a ministerial meeting in Beirut June 3.
Bureau Report