Thursday, July 20 2006 10:56 Hrs (IST) - World Time -

Singapore: Oil prices turned higher again in Asian trade today (July 20, 2006), after a sharp reverse overnight on the latest US inventory figures, as the market kept a wary eye on the Middle East following heavy Israeli attacks on Lebanon, dealers said.

The price gains also came in line with a change in contract, from August to September.

At 10:57 am (0827 IST), New York's main contract, light sweet crude for delivery in September, was at 75.17 dollars per barrel, up 40 cents.

The August contract closed at 72.66 dollars (rpt 72.66 dollars) after dropping as low as 71.65 dollars the lowest since the end of June in New York.

Brent North Sea crude for September was up 40 cents at 74.30 dollars.

The price falls overnight followed the latest United States Department of Energy (DoE) snapshot on energy stockpiles showed a bigger than expected rise in key gasoline (petrol) inventories.

"I think prices fell earlier because of the market's knee-jerk reaction to the slightly bearish DoE report," said Tonoy Nunan, manager for energy risk management at Mitsubish Corp's international petroleum business in Tokyo.

The DoE weekly report showed US crude oil inventories rose 200,000 barrels to 335.5 million barrels in the week to July 14. Analysts had expected a fall of 650,000 barrels.

Gasoline stocks jumped 1.5 million barrels to 214.2 million, compared with a predicted decline of 800,000 barrels, the DoE said.