Friday, March 10 2006 11:43 Hrs (IST) - World Time -

Singapore: Oil prices rose in Asian trade today(Mar 10,2006) after Iran's hardline regime dug in for a confrontation with Western powers over moves to halt its nuclear programme, dealers said.

Prices had fallen below 60 dollars a barrel a day earlier on news of healthy US crude oil inventories but fears the Iranian nuclear issue could escalate reversed the trend.

At 0400 GMT (0930 IST), New York's main contract, light sweet crude for delivery in April, was up 13 cents to 60.60 dollars from its close of 60.47 dollars in the United States yesterday.

"The market is reacting to some rhetoric regarding the Iranian situation," said Victor Shum, a Singapore-based analyst with US energy consultancy Purvin and Gertz.

"Traders are moving to cover their short (sell) positions and so the market is rebounding even though market fundamentals are really quite conducive for lower prices. This illustrates how edgy the market is, how reactive it is to geo-political events," he said.