Monday, May 8 2006 10:24 Hrs (IST) - World Time -

Singapore: Oil prices rose in Asian trade today (May 8, 2006) as tensions between Iran and the West over its nuclear programme continued to stir the market ahead of a key meeting among world powers, dealers said.

At 11:10 am (local time), New York's main contract, light sweet crude for June delivery was up 32 cents at 70.51 dollars a barrel from its close of 70.19 dollars in New York on Friday.

Brent North Sea crude for June delivery was at 70.80 dollars, up 70 cents.

Iranian leaders said yesterday that the involvement ofthe UN Security Council was directing the negotiations on its nuclear program 'towards confrontation'.

The Islamic republic also threatened to quit the Non-Proliferation Treaty, the cornerstone of the global effort against the spread of nuclear weapons, a move that could escalate the risk premium on Iran, the world's fourth largest crude producer.

"Geo-political risk in Iran is a major driver of the market; it will continue to be major driver this year," said Daruisz Kowalczyk, a senior investment strategist with CFC Seymour in Hong Kong.