World oil prices dipped on Friday as traders kept a wary eye on global stock market turmoil and focused on the demand outlook for gasoline.
New York's main oil futures contract, light sweet crude for delivery in April, closed down US$0.36 at US$61.64 per barrel.
Across the Atlantic in London, the price of Brent North Sea crude for April delivery settled down a slight US$0.03 at US$62.08 per barrel.
"Fundamentally, the concern is for gasoline supply in America [and] everybody is turning attention more to the [US] driving season," said Base Commodities trader Tony Machacek, in reference to the peak-demand holiday season when many in the US hit the roads for their holidays.
The so-called US driving season starts in late May and the oil market is starting to switch its attention to gasoline and away from heating fuel, as the northern hemisphere winter winds down and energy players begin to adjust their holdings.
On Thursday, world oil prices rose to peaks for this year above US$62 as traders focused on a weekly US Department of Energy report amid global stock market jitters tied to concerns about Chinese and US economic growth.
The hefty gains came after "a larger than expected drop in US distillate and gasoline stocks," according to Sucden analyst Michael Davies. Lingering cold weather in parts of the US has lengthened demand for heating fuel.
Meanwhile, traders continued to keep a watch on the ongoing volatility sweeping global stock markets.
Machacek added that market players were "still very jittery," and that oil prices could slide further if the stock market had another tumble.
Earlier this week, crude oil prices had fallen as traders viewed the sell-off in global stock markets as a sign that fuel demand in the US and China might not grow as robustly as the market had anticipated.
Elsewhere, geopolitical concerns continued to simmer over tensions between the West and key crude producer Iran over Tehran's nuclear ambitions.
Iran's unwillingness to slow down its uranium enrichment program is stoking global supply fears, analysts said.
Traders are concerned that if Iran, a key member of the OPEC, is punished with economic sanctions by the West over its nuclear energy program, the Islamic republic might retaliate by slashing its oil exports.
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