Tuesday, May 30 2006 11:35 Hrs (IST) - World Time -

Singapore: "Oil prices were higher in Asian trade today (May 30, 2006) after the long Memorial Day weekend with the market still concerned about Iran's row with the West over its nuclear programme," dealers said.

Prices were also being pushed up by expectations of strong gasoline (petrol) demand in the United States as the country's summer driving season gets underway, they said.

At 0755 IST (10:25 am), New York's main contract, light sweet crude for July delivery was 38 cents higher at 71.75 dollars a barrel from its close of 71.37 dollars in the United States Friday.

Markets in the US were closed yesterday for the Memorial Day public holiday.

"I think the market really is looking for a direction and there are a mumber of things happening this week," said Victor Shum, an analyst with energy consultancy Purvin and Gertz in Singapore.

"We've got the US summer driving season and I think the market will look for implications about the US gasoline demand situation," he said.

Memorial Day marks the start of the US summer driving season when many Americans take to the roads for their vacation and gasoline demand typically increases.

Meanwhile, Iran's insistence that it has the right develop nuclear energy is yet another sign that Tehran's row with the West over its nuclear programme will not be settled any time soon.

"There is more upside potential than downside potential in this market," Shum said.