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Crude ends week mixed after gains of more than US$2.50

Global oil prices were mixed on Friday amid profit taking on a price surge this week driven by concerns about tight US gasoline supplies just ahead of peak vacation-season demand.

New York's main oil futures contract, light sweet crude for delivery in June closed US$0.08 higher at US$64.94 a barrel.

In London, Brent North Sea crude for July delivery lost US$0.85 to close at US$69.42, after shooting up to US$70.35, a high last seen more than eight months ago.

Crude futures have gained more than US$2.50 in New York and London this week as the market focused on problems at US refineries ahead of the high-demand driving season and unrest in oil producer Nigeria.

US government data showed gasoline inventories are more than 7 percent below their five-year average for mid-May.

Dealers said the market remained concerned whether US refineries could meet gasoline demand when Americans take to the highways during the holiday driving season which begins in earnest on May 26.

The Automobile Association of America (AAA) said 38.8 million drivers were expected to hit the road that weekend, 1.7 percent more than last year, putting pressure on demand.

The price of gasoline at the pump has jumped from record to record, but apparently has made little dent in Americans' desire to drive. On Friday the average price leapt to US$3.129 a gallon (3.78 liters), a new record, the AAA said.

For John Kilduff of Man Financial, the tight gasoline supply "will remain the primary influence on prices, at least for the short term."
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