Oil prices lower in Asian trade

Oil prices were lower in Asian trade today ahead of a report expected to show rising oil inventories in the United States, the world's biggest energy consumer.

Dealers said the market was also affected by worries about the health of the biggest US banks, with the results of government-ordered "stress tests" due tomorrow.

New York's main oil futures contract, light sweet crude for delivery in June, dropped 19 cents to $53.65 a barrel.

Brent North Sea crude for June delivery fell 19 cents to $53.93 a barrel.

"On the supply side all we hear is that there is a glut of oil," said Phil Flynn of Alaron Trading.

Data showing that the worst may be over for the US economy has stoked hopes for an economic rebound and helped spark a recent rally in global share markets.

In intraday trade on yesterday, New York crude briefly hit $54.83 -- its highest level since November 18.

Investors are wary of any expected increase in oil inventories in the United States, which would indicate that energy demand remains weak. The US Department of Energy will release the inventory data later on today.

World oil prices have slumped since striking record highs above $147 in July 2008, as the global economic downturn has put a significant dent in demand.