Wednesday, June 28 2006 11:53 Hrs (IST) - World Time -

Singapore: "Oil prices climbed past 72 dollars in Asian trade today as the market focussed on the prospect for tight gasoline (petrol) demand during the North American summer driving season following refinery problems on the Gulf coast, "dealers said.

At 11:25 am (0755 IST), New York's main contract, lightsweet crude for delivery in August, was at 72.09 dollars per barrel, up 17 cents from 71.92 dollars in late US trade.

Brent North Sea crude for August delivery was flat at 70.98 dollars.

"The market (is) focusing on gasoline inventory in the US which is important for the summer season. Gasoline supply (is) be very limited even if the US is importing -- but consumption is not getting less," said Tetsu Emori, chief commodity strategist at Mitsui Bussan Futures in Tokyo.

Despite higher prices, US drivers seem unwilling to curb consumption.

"The price of gasoline is now 3.50 to 4.00 dollars a gallon, similar to that during the US hurricane season last year, yet drivers are still paying. They will not stop moving. I don't think demand will go down," Emori added.

Over the past four weeks, US demand for gasoline has been running 0.9 percent higher than a year ago, the Department of Energy reported last week.

The department's weekly snapshot of oil inventories was due later today. High demand has been mirrored in China, where recent Chinese customs data showed oil demand growth jumped 13.5 percent in May as refiners boosted output and curbed exports ahead of a domestic price increase.