June 6 (Bloomberg) -- Crude oil pared gains on speculation the U.S. would have enough gasoline to meet demand as the summer driving season got under way.

Today's petroleum inventory report from the Energy Department will probably show U.S. gasoline supplies rose by 1.6 million barrels in the week through June 1, according to a Bloomberg News survey of 11 analysts. Oil supplies probably rose 125,000 barrels, the sixth gain in seven weeks.

``All the news about refineries getting on line or outages is really exaggerated in the prices at the moment,'' said Edo Gerbrands, a trader with Fortis Bank in Brussels. Prices probably won't change much ``until the stats, and that can change the picture totally.''

Crude oil for July delivery fell 10 cents to $65.51 a barrel in after-hours electronic trading on the New York Mercantile Exchange at 12:10 p.m. in London. Earlier, the contract rose as much as 35 cents to $65.96 a barrel.

Valero Energy Corp., the largest U.S. refiner, closed two gasoline units at processing plants in Louisiana and Houston yesterday. The inventory report will probably show domestic refineries operated at 91.6 percent of capacity last week, a gain of 0.5 percentage point from the week before, according to the Bloomberg News survey.

Brent crude oil for July settlement dropped 3 cents to $70.42 a barrel on the ICE Futures exchange in London.

The Department of Energy will publish the inventory report at 10:30 a.m. in Washington.

Persian Gulf Cyclone

Saudi Aramco, the world's biggest state-controlled oil company, said it doesn't expect Tropical Cyclone Gonu to hurt production and exports from the kingdom's eastern province as the storm moves through the Persian Gulf.

``It's a total wild card,'' said Mike Wittner, the head of energy market research at Credit Agricole SA's Calyon unit in London. Gonu's effect on oil prices will depend on whether it hits a refinery or the crude production facilities, he said.

The center of the cyclone, the worst to hit the Arabian Peninsula in more than 60 years, was 111 kilometers east-southeast of Muscat at 1 p.m. Oman time today, according to the latest advisory on the Web site of the U.S. Navy Joint Typhoon Warning Center. Gonu was moving northwest at 13 kilometers per hour.

Oman Shuts Down

Omani seaports and oil-export terminals shut yesterday as Gonu battered the country. The storm may last more than 48 hours, Gulf Agency Co., a shipping company operating at several Omani ports, said today. The Sohar, Mina al-Fahal and Sur ports are all affected and will remain closed until the weather improves, it said.

By the time the cyclone reaches Muscat at 4 p.m. local time, its winds are expected to slow to 120 kilometers per hour. Gonu then will head for the Strait of Hormuz and reach southern Iran June 8 or June 9, the U.S. Navy forecast.

Oman produced 720,000 barrels of oil a day during the first quarter, according to the International Energy Agency. Its export crude oil grade, known simply as ``Oman,'' is shipped from the Mina al Fahal terminal near Muscat.

Brent crude oil, the European benchmark, rose in May to a record premium to the U.S. benchmark, West Texas Intermediate, as refinery problems in the U.S. cut demand and supplies of WTI accumulated. Brent prices were also supported by disruptions to Nigeria's supplies.

Brent's differential to WTI was a record high $6.54 a barrel on May 24. It had narrowed to $4.83 at 12:11 p.m. in London.

``We are all looking as the year progresses for that differential to narrow,'' Wittner said. ``It's very wide right now.''

In U.S. dollars, WTI has fallen about 9 percent in the past 12 months. Oil has dropped 14 percent in euros, 16 percent in British pounds and 3 percent in yen.

To contact the reporter on this story: Eduard Gismatullin in London at egismatullin@bloomberg.net

Last Updated: June 6, 2007 07:31 EDT