Thursday, June 15 2006 12:39 Hrs (IST) - World Time -

Singapore: Oil prices continued to rise in Asian trade today (June 15,2006) on news of a fall in US crude stockpiles, with China's strong industrial growth figures also boosting demand expectations, dealers said.

At around 11:00 am (0830 IST), New York's main contract, light sweet crude for July delivery, was up 26 cents to US$ 69.40 a barrel from its close of US$ 69.14 in the United States yesterday.

Brent North Sea crude for July delivery gained four cents to US$ 67.02.

"The gradual appreciation of prices is caused by the decline in crude stocks in the United States," said Dariusz Kowalczyk, a Hong Kong-based investment strategist with CFC Seymour.

The US Department of Energy (DoE) released its weekly inventory report yesterday showing a rise in US reserves of gasoline but a dip in crude stocks.

The DoE said crude inventories fell 900,000 barrels to 345.7 million barrels in the week to June 9. Analysts had expected a smaller fall of 700,000 barrels.

Reserves of gasoline, which are under scrutiny as US drivers take to the roads en masse for summer holidays, rose 2.8 million barrels last week to 213.1 million. That was double the forecast rise.

US inventories of distillate fuels such as diesel and heating oil rose by 2.1 million barrels to 122.8 million.

The DoE also reported that US refineries operated at 92.7 per cent capacity in the past week, up from 91 per cent in the prior week.