Oil holds over $73 supported by US demand

London oil futures held firm above $73 a barrel in muted activity today as traders awaited the end of a long US holiday weekend…

London oil futures held firm above $73 a barrel in muted activity today as traders awaited the end of a long US holiday weekend that is expected to have lifted petrol demand.

London Brent crude was up 8 cents at $73.47 a barrel by early this morning, reversing part of yesterday's 12-cent loss.

The US New York Mercantile Exchange resumes trading tomorrow after the US Independence Day holiday, when holiday drivers are expected to reach a record number.

US weekly inventory data - due on Thursday, a day later than usual due to the holiday - will give a snapshot of supply and demand at the end of last week.

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Thinning fuel stocks could add impetus to a market that has rallied more than 20 per cent this year, lifted by prolonged international tension over key oil exporter Iran's nuclear programme and partial loss of Nigeria's crude supply.

Senior Iranian nuclear officials yesterday dismissed a demand that Iran suspend uranium enrichment, Iranian news agencies reported.