Wednesday, August 2 2006 11:12 Hrs (IST) - World Time -

Singapore: Oil prices jumped back above 75 dollars in Asian trade today (Aug 2,2006) as hopes for a quick ceasefire in Lebanon faded while concerns grew at the approach of a tropical storm in the United States, dealers said.

At 10:35 am (0805 IST) New York's main contract, light sweet crude for September delivery, was 39 cents higher at 75.30 US dollars a barrel from 74.91 dollars in late US trades yesterday (Aug 1, 2006).

The contract hit 75.45 dollars earlier yesterday, its highest level since July 18.

Brent North Sea crude for delivery in September was up 33 cents at 76.22 dollars. It briefly touched 76.58 yesterday, which was also last seen on July 18.

"It seems right now the Middle East conflict will take longer than people expected, especially the prospects for a ceasefire," said Dariusz Kowalczyk, senior investment strategist with CFC Seymour in Hong Kong.

Israeli troops fought fierce battles with Hezbollah guerrillas in Lebanon early today as United Nations Security Council members struggled to overcome differences on how to end the violence.

Israel's decision to widen its three-week-old offensive came amid apparent disagreement among major powers on how to end the conflict.

Ambassadors from the five permanent Security Council members appeared split over the timing of a ceasefire after holding what were described as 'frank discussions' along with UN Secretary General Kofi Annan in New York.