OIL PRICES EXTEND GAINS

Oil prices extended their gains in Asia today as investors cheered robust economic data from US, China and Japan, with the breakdown of initial Ukraine- Russia talks to avert a gas cut-off also boosting prices. US benchmark West Texas Intermediate (WTI) for July gained 26 cents to USD 104.67 a barrel by midday after jumping USD 1.75 in New York yesterday. Brent North Sea crude was up 16 cents to USD 110.15 for its July contract after leaping USD 1.38 in London trade. Singapore's United Overseas Bank said crude oil prices were "buoyed by expectations of stronger demand after the robust economic data from US, China and Japan -- the world's three largest oil consumers". China on Sunday said its trade surplus surged 75 per cent in May from a year ago as exports surged. The bullish data came on the back of a positive US jobs report Friday that showed that the world's biggest oil consumer can still muster solid growth despite the weakness in Europe and other regions. Japan yesterday revised upward its economic growth for the first quarter to the fastest pace in more than two years, at an annual rate of 6.7 per cent. Investors were also tracking developments in Ukraine after early negotiations with Russia to avert a cut-off in gas supplies broke up early today without a deal. The EU-brokered gas talks in Brussels are set to resume later today or tomorrow. "The talks represent a potential source of friction and with concerns of armed conflict, it is a possibility for an upside bias on crude oil," Michael McCarthy, chief market strategist at CMC Markets in Sydney, said.