Tuesday, June 13 2006 11:27 Hrs (IST) - World Time -

Singapore: Oil prices eased in Asian trade today (June 13, 2006) on reports the first tropical storm of the US hurricane season, Alberto, is on course to miss the energy installations in the Gulf of Mexico, dealers said.

At 0820 IST (10:50 am), New York's main contract,light sweet crude for July delivery, was down 26 cents to 70.07 US dollars a barrel from its close of 70.36 dollars in the United States yesterday (June12, 2006).

Brent North Sea crude for July delivery was at 68.70 dollars, down 23 cents. "One bearish factor is that Alberto is not going over major oil and gas areas in the Gulf of Mexico," said Dariusz Kowalczyck, a Hong Kong-based investment strategist with CFC Seymour.

US authorities had issued a hurricane warning yesterday for Florida as Alberto gathered strength and hurtled towards the US Gulf of Mexico coastline.

Energy facilities in the rig-rich Gulf Coast region account for more than a quarter of total American oil production and last year were devastated by hurricanes Katrina and Rita, sending oil prices to then-record levels.

Meanwhile, Iran's standoff with the West over its controversial nuclear programme will limit further falls prices, dealers said.

"There is still going to be some negotiations (between Iran and the West) and until that is out of the way, we are not going to see a significant sell off," said David Thurtell, a Sydney-based commodities strategist with Commonwealth Bank of Australia.