Oil prices rose in Asian trade today as concerns over supply disruptions in Iran and Nigeria outweighed figures showing weak US energy demand, analysts said.

New York’s main contract, West Texas Intermediate crude for delivery in February gained 45 cents to $ 101.32 in morning trade.

Brent North Sea crude for February delivery was up 73 cents to $112.97.

“The US/European-led sanctions on Iran look to tighten and have caused some Asian buyers to begin to look to alternative supplies,” said Mr Sanjeev Gupta, who heads the Asia-Pacific Oil & Gas practice at Ernst & Young.

“Iran’s threat to disrupt shipping through the Straits of Hormuz is keeping markets on edge, particularly Asian markets.”

Western powers are moving to tighten sanctions on Iran, accusing the country of trying to develop nuclear weapons.

And today that pressure was increased when Japan pledged during a visit by the US Treasury Secretary, Mr Tim Geithner, to cut the amount of oil it imports from Iran.

Tehran has denied the nuclear allegations, saying its atomic programme is for peaceful purposes and has threatened to block the strategic Strait of Hormuz if fresh sanctions are imposed, a move that could further escalate tensions.

“The sanctions... could have a knock on impact on spare capacity, should other countries, such as Saudi Arabia have to increase output to fill the gap,” Barclays Capital said in a market commentary.

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