Friday, June 9 2006 10:49 Hrs (IST) - World Time -

Singapore: "Oil prices were higher in Asian trade today (June 9, 2006) on reports that Iran has accelerated uranium enrichment, dampening hopes of a resolution to Tehran's controversial nuclear programme," dealers said.

At 10:20 am (0750 IST), New York's main contract, light sweet crude for July delivery, was up 20 cents to 70.55 US dollars a barrel from its close of 70.35 dollars in the United States yesterday.

Brent North Sea crude for July delivery was at 69.22 dollars, up 17 cents.

The UN atomic agency said Iran accelerated enrichment on the same day European Union foreign policy chief Javier Solana visited Tehran to present a package of benefits to be discussed if Iran would suspend uranium enrichment.

"There are mixed signals coming out of out Iran. On the one hand, there are positive signals about accepting the incentive proposal (from the UN top five powers plus Germany) and on the other hand, there is this continued nuclear research," said Victor Shum, a Singapore-based analyst with energy consultancy Purvin and Gertz.

"The Iranian situation will linger in the background and continue to support price at high levels," he added.

The report by the International Atomic Energy Agency dampened hopes that Iran is preparing an immediate pause in its nuclear fuel activities in order to start talks on guaranteeing its programme is peaceful.

Washington and the European Union fear that Iran's nuclear program is a cover for developing nuclear weapons and have threatened UN sanctions if Iran does not up the benefits offer.