LONDON, 29 March 2007 — Oil was up by more than $1 yesterday on Iran concerns. US crude was trading up $1.28 at $64.21 a barrel by 1654 GMT. It slipped off its early peak after US weekly inventory data showed a smaller-than-expected draw in US gasoline stocks last week.

London Brent crude was up $1.32 cents at $65.92 a barrel. The rise extended a six-day rally that has added about 10 percent to prices, pushing them nearer the danger zone for consumer nations who fear they could stymie economic growth.

Weekly US oil inventory data showed a seventh-straight fall in gasoline stocks in the world’s biggest consumer as it prepares for peak summer demand.

But a drop of 300,000 barrels of gasoline in the week ending March 23 lagged analysts’ forecasts for a 1.8-million-barrel draw. Gasoline has been leading the oil market higher as US supplies have dropped steadily ahead of the peak demand season.

Crude oil stocks fell by 900,000 barrels compared forecasts for a rise of 1.6 million barrels.

Oil’s surge to $68.09 on Tuesday was its highest since Sept. 6 and highlighted anxiety over supplies from the Gulf and in particular No. 4 exporter Iran.

Meanwhile, the dollar regained ground yesterday after Federal Reserve Chairman Ben Bernanke lowered expectations of an imminent interest rate cut by saying the US central bank was keeping an eye on inflation.

The euro fell to 1.3335 dollars in late European trades from 1.3344 dollars late Tuesday in New York. The dollar dropped to 116.80 yen in European trade, from 117.91 yen late on Tuesday.

The euro was changing hands at 1.3335 dollars, against 1.3344 dollars on Tuesday, 155.66 yen (157.38), 0.6796 pounds (0.6790) and 1.6185 Swiss francs (1.6201). The dollar stood at 116.80 yen (117.91) and 1.2139 Swiss francs (1.2137).

On the London Bullion Market, the price of gold rose to $666.75 per ounce, from $664 late on Tuesday.

Major European stock exchanges lost ground yesterday, with the London FTSE 100 index off by 0.40 percent at 6,267.20 points. In Paris the CAC 40 gave up 0.62 percent to 5,552.69 while in Frankfurt the DAX closed 0.60 percent lower at 6,816.89.

In New York, the Dow Jones Industrial Average was down 57.60 points, or 0.46 percent, at 12,339.69. The Standard & Poor’s 500 Index was down 4.79 points, or 0.34 percent, at 1,423.82. The NASDAQ Composite Index was down 5.77 points, or 0.24 percent, at 2,431.66.

Asia shares fell yesterday. The Tokyo Stock Exchange’s Nikkei-225 index of leading shares fell 110.32 points to 17,254.73. The TOPIX index of all issues on the Tokyo Stock Exchange’s first section eased 12.80 points or 0.74 percent to 1,711.06.

Australian share prices lost 0.69 percent yesterday. The benchmark SP ASX 200 index dropped sharply after lunch but rose slightly in the afternoon session to close down 41.0 points at 5,923.2. The broader All Ordinaries index fell 39.0 points to 5,913.3.

Hong Kong’s Hang Seng and Singapore’s Straits Times both lost more than 1.2 percent in morning trade.