Oil prices climb higher in Asian trade

Increase: Oil prices were higher in Asian trade yesterday (2) on concerns over tight US gasoline (petrol) supplies ahead of the US summer driving season, dealers said.

At 1:50 pm (0550 GMT), New York's main contract, light sweet crude for June delivery, was up 20 cents to 64.60 US dollars a barrel from its close of 64.40 dollars in late US trades Tuesday.

Brent North Sea crude for June delivery was up 35 cents to 67.35 dollars.

"I think the ... market remains underpinned by concerns over US gasoline supplies and is looking ahead of the inventory data out of the US," said Victor Shum, a Singapore-based analyst with energy consultancy Purvin and Gertz.

"The general expectation is gasoline inventories will again show a drawdown and that will remain the over-riding issue driving the market."

The US Department of Energy (DoE) is to release later Wednesday its weekly update on the state of energy stockpiles and other oil reserves in the world's largest oil consumer.

Figures last week showed US gasoline reserves declined 2.8 million barrels in the week ending April 20, against market forecasts of a fall of just 500,000 barrels. It was the 11th consecutive weekly drop in gasoline reserves.

"We have a situation in (gasoline) inventory that is the lowest level we have seen in a number of years in the US," said Shum.

Meanwhile, US crude oil inventories increased 2.1 million barrels last week, which confounded analysts' forecasts for a decrease of 1.5 million barrels.

Dealers said concerns remain too over the latest kidnappings of foreigners in Nigeria, the world's sixth-biggest oil exporter.

(AFP)