Oil futures were lower on profit-taking amid an improving refinery production situation in the US, traders said. At 10.00 am, September-dated Brent futures contracts were down 26 cents at 65.32 ahead of tonight's contract expiry and off yesterday's record of 66.85 usd a barrel. Volumes were higher in October-dated Brent contracts, with prices down 50 cents at 64.98. Meanwhile, US benchmark September-dated contracts were down 54 cents at 65.72, in pre-market deals. Brent trading is expected to be volatile due to tonight's contract expiry. Overall oil futures on both sides of the Atlantic are undergoing profit-taking, falling away from record high's as the US refinery situation improves, said GNI-Man Financial trader Lee Elliot. US refineries have in recent weeks suffered a series of breakdowns as refiners struggled to push production to the limit and raise stock levels ahead of the winter months, when demand for refined crude is at its highest. Traders at Man see the current resistance level for Brent set at yesterday's record of 66.85 usd, and US benchmark futures are also pegged at Monday's record of 67.10 usd. Analyst Jim Ritterbusch of Ritterbusch and Associates sees US oil futures in the midst of a much deserved technical correction. However, the trigger for prices either trading at new highs or continuing its downward correction will be determined by tomorrow's inventory report and refinery news, he added. Looking to the report, Senior energy analyst at IFR Tim Evans predicts there will be a rise of 1-2 mln barrels in each crude, gasoline and distillate stocks for the week ending August 12. Separately, analysts said oil prices are also being underpinned by tensions in the Middle East