Friday, May 19 2006 14:12 Hrs (IST) - World Time -

Singapopre: Oil prices extended gains today (May 19, 2006) in Asian trading as traders judged declines earlier this week as premature given persistent concerns about Iran's nuclear programme and the upcoming summer driving season.

Light, sweet crude for June delivery rose 42 cents to US$ 69.87 a barrel in Asian electronic trading on the New York Mercantile Exchange. The contract yesterday settled at US$ 69.45 a barrel, an increase of 76 cents.

"The concerns that drove prices down were premature, particularly in the US market," said energy analyst Victor Shum of Purvin & Gertz in Singapore.

"The market is rebounding and some participants are taking advantage of the lowered prices to get back into it," he said.

Traders remain concerned about how the West's standoff with Iran will affect that nation's oil exports as well as supply disruptions in Nigeria and the Gulf of Mexico hurricane season.

Shum also noted that the peak driving season in the United States was approaching, beginning with the upcoming Memorial Day holiday at the end of May, and that would gauge market demand.

US Government data released Wednesday showed the domestic supply of gasoline rose for the third straight week amid stagnating demand.

Gasoline futures rose 1.64 cents to US$ 2.0315 in Asiantrading.

The Department of Energy said in its weekly petroleum supply snapshot that domestic gasoline supplies grew by 1.3million barrels last week to 206.4 million barrels.