Friday, March 3 2006 12:02 Hrs (IST) - World Time -

Singapore: Oil prices continued higher in Asian trade today(Mar 3,2006) as the market focused on concerns about developments in Iran and Nigeria rather than on the healthy stocks reported in the United States, dealers said.

At 10:40 pm (0810 IST), New York's main contract, light sweet crude for delivery in April, was up 20 cents to 63.56 dollars from its close of 63.36 in the United States yesterday(Mar 2,2006).

"The possibility is high that Iran will be sent to the UN Security Council by the IAEA and this increases the risk of a supply disruption from Iran which is bullish (supportive) for prices," said Dariusz Kowalczyk, a Hong Kong-based senior strategist with CFC Seymour.

The International Atomic Energy Agency (IAEA) meets Monday to make an assessment of Iran's nuclear programme and its possible referral to the United Nations Security Council, which could then take action, most likely in the form of sanctions against Tehran.

The IAEA's board of governors on February 4 reported Iran to the Security Council but left a month open for diplomacy before the world body decides what measures to take.

"Because of the meeting of the IAEA on Monday, people do not want to go home short (with a sell bias) for the weekend," said Kowalczyk.

Elsewhere lingering concerns over Nigeria provided further support for prices. On Wednesday, separatist guerrillas released six of nine foreign oilmen they were holding captive in the Niger Delta, but warned that they would step up attacks aimed at 'destroying' Nigeria's oil industry.