Oil prices up in quiet Asian trade

Oil prices gained slightly in subdued Asian trade Tuesday as dealers searched for fresh cues following public holidays in the United States and much of Europe.

US benchmark West Texas Intermediate for July delivery gained 15 cents to $59.87 while Brent crude for July rose seven cents to $65.59 in afternoon trade.

"Trading has been at such low volumes that we can't see the impact on the oil market," Michael McCarthy, chief market strategist at CMC Markets in Sydney, told AFP.

There was no floor trading of crude in New York and London on Monday.

McCarthy said a resurgent US dollar remained a concern. The greenback was changing hands at 121.95 yen against 121.66 yen Monday afternoon and well up from 121.52 yen in New York on Friday.

The unit's rise has been supported by last week's comments from Federal Reserve chair Janet Yellen that she expects to raise interest rates "at some point this year".

US interest rate adjustments are closely watched by crude investors as an increase usually leads to a pick-up in the greenback, making dollar-priced oil more expensive for buyers using weaker currencies.

McCarthy said there were signs oil prices have stabilised following sharp fluctuations as investors weighed concerns about conflicts in the crude-rich Middle East with a global supply glut.

"I wouldn't say that oil is on an uptrend but neither is it on a steady fall. Oil has stabilised at current prices, and we expect both the WTI and Brent to remain in this $60-$70 range over the next couple of weeks," said McCarthy.

Analysts said traders are awaiting the release of key US data this week, including durable goods orders figures Tuesday, a crude stockpiles report on Wednesday and the second reading of first-quarter gross domestic product Friday.