Oil up in Asia as US floods threaten refineries

Crude extended gains in Asian trade today on fears that record floods might affect refineries along the Mississippi River in the United States, analysts said.

New York's main contract, light sweet crude for delivery in June, rose 14 cents to $104.02 a barrel in morning trade.

Brent North Sea crude for June delivery gained 23 cents to $117.86.

"Oil settled higher in the US yesterday and is a little bit up (in Asia) following floods in Mississippi," said Shailaja Nair, a Singapore-based oil analyst from energy information provider Platts.

"There are refineries along the Mississippi River. Cutting their operating capacity will be a big factor in oil prices."

She added that the Mississippi, experiencing its worst flooding since 1925, is also a major transport line for Louisiana, which hosts at least two refineries and hundreds of oil and gas wells.

"This is a very serious flood," Louisiana Governor Bobby Jindal said.

Louisiana state's fuel team has identified two refineries, more than 1,750 oil and gas wells and 135 operators in the affected areas.

The United States is the world's biggest oil consuming nation.

"Flooding in the lower Mississippi valley, where 11 refineries process up to 2.5 million barrels a day, is causing problems for the US oil and oil product markets," analyst Nic Brown of Natixis said in a note.

"Some refineries may need to be closed temporarily, while the transportation of both crude and oil products may also be impacted."

Army engineers plan to open a major spillway by Saturday in order to divert water away from New Orleans and ease pressure on the Mississippi as it approaches the Gulf of Mexico.