At 11:20 am (0320 GMT), New York's main contract, light sweet crude for August delivery was up 33 cents to 59.08 dollars a barrel from its close of 58.75 dollars in the United States Friday. The contract was not traded Monday owing to the Independence Day holiday.

"The bullish sentiment is still intact," said Dave Ernsberger, the Asia oil director at energy information provider Platts.

"Asian traders today are really looking for an extension of Friday's trade," he said.

On Friday, the contract rose 2.25 dollars to 58.75 dollars on expectations of a big increase in petrol consumption during the long weekend in the United States.

Americans traditionally take advantage of the long weekend by hitting the roads in large numbers, sending demand for petrol (gasoline) soaring.

"A lot of people noted the strong finish on Friday and that sentiment has carried over today," said Ernsberger.

"What that tells us is that no one is seeing any selling opportunity just yet," he said.

A week ago New York futures struck an all-time high of 60.95 dollars on concerns a possible global supply shortage of distillates, including heating fuel, during the fourth quarter as the northern hemisphere winter kicks in.

Prices had eased after last Wednesday's unexpected rise in US crude inventories and analysts said the weekly US government report on oil stocks will again be a major factor as to whether oil breaches 60 dollars again.