TEHRAN The price of oil was dragged below 29 dollars a barrel on Thursday by falling gasoline prices, dealers said.

Reference Brent North Sea crude for July delivery was selling for 28.65 dollars a barrel, from 29.24 dollars on Wednesday evening.

In New York, light sweet crude July futures fell 65 cents to 28.93 dollars. "It's following the gasoline mainly at the moment -- that's the one which is dragging it lower," said ABN Amro broker Steve Rout.

With the US summer 'driving season' just days away, traders are increasingly nervous about prospects of a gasoline shortage in the coming weeks, and large swings in gasoline prices are increasingly tracked by crude.

With trading volumes low because of public holidays in continental Europe, ahead of extended weekends in the United States and Britain, prices were more volatile than usual, traders said.