Oil prices were lower on profit-taking after yesterday's record busting run following the death of key oil producer Saudi Arabia's King Fahd, and on fears of supply shortages of refined crude caused by ongoing refinery problems. At 10.30 am, US benchmark September-dated contracts were down 52 cents at 61.02 usd a barrel, after having touched a record 62.30 usd before the session ended yesterday In London, September-dated Brent futures contracts were down 64 cents at 59.79 usd, after hitting a high of 60.98 late yesterday. Sucden broker Robert Montefusco said: "Oil prices are down on profit-taking after yesterday's record run which was triggered by news of King Fahd's death, and news of more refinery problems." The fact that the King's death lifted the market surprised many who had expected little price impact since Crown Prince Abdullah, who was yesterday swiftly named king, has been running the kingdom's day-to-day affairs since Fahd suffered a stroke in 1995, analysts noted. Saudi Arabia produces 9.5 mln barrels of oil a day, and has a spare capacity of 1.5 mln bpd. On going worries about adequate refined crude supplies for the fourth quarter also contributed to yesterday's rally after ExxonMobil shut its 245,000 barrel per day refinery at Joliet, Illinois after difficulties on Sunday. Lyondell-Citgo reported problems Sunday with two coker drums at the company's 268,000 bpd Houston, Texas refinery, according to a filing with Texas state regulators. Oil and refined crude products prices had already risen last week on a series of refinery problems. Dealers noted that US gasoline supplies will continue to remain tight until the so called 'summer driving season' winds down next month. Meanwhile gasoline pump prices continue to average above 2 usd a gallon, according to the latest US Department of Energy report. Looking ahead to tomorrow's weekly US inventory report senior IFR energy analyst Tim Evans said he expects to see crude stocks fall 1-2 mln barrels, distillates stocks rise 1-2 mln barrels, and gasoline to fall 12 mln barrels