But traders said the tables may have turned in the short-term on fears of a repeat of last year's US Gasoline supply crunch when refiners struggled to produce sufficient quantities of cleaner-burning grades.

Gasoline inventories are currently running slightly below last year's lean levels and supplies of methyl tertiary butyl either, an additive for green US gasoline, are 22 per cent below year-ago levels, possibly setting the stage for another summer spike at the pumps.

Gasoline aside, heating oil was helping oil prices resist the recent fallout from a plunge across global stock markets.

Lawrence Eagles with GNI Research said talk of a surge in demand for diesel for agricultural machinery ahead of the US spring planting season helped tighten the key New York harbour heating oil cash market.

"The strength of the products last week was impressive," said Mr Eagles, adding there was cause for the US market to "be positive."With US supply worries again leading prices, the market will be watching carefully to see how the Organisation of the Petroleum Exporting Countries adheres to its new supply cuts of 1 million barrels per day from April 1.The new curbs will take quotas for its ten members, excluding sanctions-bound Iraq, to 24.2 million barrels per day. In February, the Opec 10 were believed to have seeped out 560,000 bpd over their official 25.2 million bpd quota.

Non-Opec Mexico, which along side Opec masterminded hefty cuts to lift oil prices from under $10 in 1998, disappointed markets by agreeing on Friday a token exports curb of 40,000 bpd.