Tuesday, May 23 2006 11:47 Hrs (IST) - World Time -

Singapore: Oil prices jumped above the 70 dollar level in Asian trade today (May 23, 2006) as experts forecast a potentially packed Atlantic hurricane season, dealers said.

At 0800 IST, New York's main contract, light sweet crude for July delivery, was up 41 cents to 70.37 dollars a barrel from its close of 69.96 dollars in the United States yesterday.

The June contract expired in New York trade yesterday, closing at 69.23 dollars.

Brent North Sea crude for June delivery was at 69.70 dollars, up 35 cents.

Crude prices halted their decline yesterday after US experts predicted as many as 10 Atlantic hurricanes in upcoming months, four of which could hit the United States.

Analysts fear that a hurricane this year could push oil prices above 90 dollars a barrel if it hits oil installations in the US Gulf of Mexico as happened last August when the Katrina and Rita storms devastated US oil and refinery output.

"When the hurricane season starts, the US buyers willstart to buy more and this could send prices above 90 dollars," said Tetsu Emori, a Tokyo-based commodities strategist with Mitsui Bussan Futures.

"The outlook calls for a very active 2006 season," the US National Weather Service said in a report released yesterday.

At the same time, it said that the six-month Atlantic hurricane season, which starts on June 1, is unlikely to reachthe records set last year when there were 28 tropical storms, 15 of which strengthened into hurricanes.