Oil steady below $74, awaits gasoline inventories

Oil prices opened flat after the US Independence Day holiday as traders awaited news of an expected record draw on gasoline stocks, with North Korean missile launches adding to geopolitical worries for the market.
Crude for August delivery was trading down 13 cents or 0.18 percent at $73.80 a barrel by 2326 GMT. Prices rallied more than $3 a barrel last week as US drivers began to hit the roads for the summer holidays.
"After gasoline inventories began to fall last week the key focus is now where they go this week," said Gerard Burg, energy economist at the National Australia Bank. "The market wants to see if stocks are adequate to get through the summer driving season, especially as supply could be disrupted by more hurricanes."
The next snapshot on the state of US fuel inventories will be released on Thursday, a day later than usual because of the Independence Day holiday. Analysts expect to see a strong draw on stocks despite near-record prices.
US unleaded gasoline prices rose nearly 7 cents to average $2.93 a gallon last week, just below the record of $3.056, the Energy Information Administration said on Monday. Nymex gasoline was last trading up $0.0062 or 0.28 percent to $2.2250 a barrel.
US crude has rallied by around 20 percent since the end of last year, pushed higher by anxiety about oil producer Iran's dispute with the West over its nuclear programme, as well as disruption of oil output by militant unrest in Nigeria.
On Wednesday saw geopolitical tensions heightened after North Korea launched a series of missiles into the Japan Sea. The missiles included one long-range missile able to reach Alaska, although it apparently failed 40 seconds into its flight, US officials said.
"There's not much oil production in the region so this doesn't point to supply disruption," said NAB's Burg. "But it is yet another political issue of the sort which has kept oil at the topside of its range over the past few weeks."
Providing some relief from supply concerns, Iraq said it plans to invite international oil companies to help develop its giant oilfields before the end of this year. Iraq, home to the world's third biggest oil reserves which are estimated at 115 billion barrels, needs up to $20 billion in foreign investment to boost production.