LONDON - Oil prices fell below US$73 a tub on Tuesday in thin trade, but irritating fears about supply disruption and prospect of strong US demand for petrol prevented a deeper sell-off.

London Brent crude was 80 cents lower at US$72.59 a barrel by 5.15pm GMT (5.15am Wednesday NZT) after contravention through the US$73-a-barrel psychological level.

Trading activity has been incomplete so far this week because of the closure of the US market to mark Independence Day.

Ahead of the holiday, prices rallied more than US$3 a barrel for US basic last week on outlook of record demand from US motorists over the long holiday weekend, despite near record pump prices.

US unleaded petrol prices standard at US$2.932 a gallon, according to the American Automobile Association, just below the record of US$3.056.