Friday, May 26 2006 14:20 Hrs (IST) - World Time -

Singapore: "Oil prices rose in Asian trade today (May 26, 2006) as the market revisited longstanding concerns over Iran's nuclear programme and the start of the US summer driving season," dealers said.

They said losses earlier this week were temporary, providing a buy opportunity as the underlying firm tone of the market remained in place.

At 1015 am (0745 IST), New York's main contract, light sweet crude for July delivery was 18 cents higher at US$ 71.50 from its close of US$ 71.32 in the United States yesterday.

Brent North Sea crude for July delivery was flat at US$ 70.71.

"The Iranian issue, even though it is off the front pages, remains there and will provide support to high prices," said Victor Shum, an analyst with energy consultancy Purvin and Gertz in Singapore.

"It will set somewhat of a high floor (for prices)," he said.

The fear is that Iran, the world's fourth-biggest crude producer, could halt exports should the United Nations impose sanctions on the Islamic republic.

Iran insists its nuclear programme is strictly for civilian energy production but the West suspects Tehran is planning to build nuclear weapons.

With the US summer driving season starting this weekend with the Memorial Day public holiday, when many Americans take to the roads for their vacations, oil prices are also expected to hold steady.