Oil prices continue higher in Asian trade

SINGAPORE (AFP) - Oil prices continued higher in Asian trade Thursday, extending overnight gains despite US data showing refineries boosted output and an increase in key seasonal gasoline (petrol) stocks, dealers said.

At 11:04 am (0304 GMT), New York's main oil futures contract, light sweet crude for delivery in September, was up 33 cents to 76.21 dollars per barrel, from 75.88 dollars in late US trades on Wednesday after jumping 2.32 dollars.

Brent North Sea crude for September gained 13 cents to 76.45 dollars after adding 1.24 dollars in London.

The gains followed a weekly US Department of Energy report which showed that gasoline stocks grew 800,000 barrels in the week to July 20. Analysts had expected a decline of 125,000 barrels owing to high demand for motor fuel as Americans take their summer holidays.

Refineries kicked up a gear, using 91.7 percent of capacity and stockpiles of distillates, such as heating fuel and diesel, increased by 1.5 million barrels, double analysts' consensus forecast.

Crude inventories fell 1.1 million barrels to 351 million.

After three days of losses in Asian trade, the sharp rebound in prices "has a lot to do with those numbers" in the inventory report, said Tobin Gorey, a commodities strategist with Commonwealth Bank of Australia in Sydney.

The market has been focussed on strong demand and problems at US refineries during the North American summer holiday season but dealers said refinery problems appeared to be easing.

"You've got evidence that there is some throughput," Gorey said, adding the inventory focus is returning to crude demand from gasoline.

"We think the market's pretty strong," Gorey said.