Oil climbs toward $64 on supply threats
New York's main contract, light sweet crude for delivery in April, added 24 cents to 63.60 dollars per barrel in electronic deals.
In London, the price of Brent North Sea crude for April delivery won 28 cents to 64.35 dollars per barrel.
In Friday trading "oil prices were higher as the market continues to focus on supply concerns", analysts at the Sucden brokerage said. "The market is now beginning to turn its attention towards two key meetings next week that could have major implications for the oil market."
The United Nations' nuclear watchdog, the International Atomic Energy Agency, meets on Monday in Vienna to make an assessment of Iran's nuclear program that may well lead to sanctions against the Islamic republic.
Iran, the second-biggest producer in OPEC after Saudi Arabia, is accused by Western powers of seeking nuclear weapons under cover of a civilian energy program.
No agreement was reached Friday between Iran, France, Germany and Britain during last-ditch talks in Vienna aimed at allaying fears over its suspect nuclear program.
"Despite Iran’s claim otherwise, there is a good chance they will halt oil exports if sanctions are imposed on them," Sucden analysts said.
The market was also looking to next Wednesday's OPEC production meeting, which is also being held in the Austrian capital.
Owing to high oil price, most analysts expect the Organization of Petroleum Exporting Countries to maintain its current production quota of 28.0 million barrels per day (bpd), despite some disagreement amongst member nations.
"Some are suggesting that there should be a cut in production because of plentiful supplies, but we believe that output will remain unchanged as a result of prices well above 60 dollar a barrel and the risk of supply disruptions," Sucden analysts added.
In OPEC member Nigeria, lingering supply concerns provided further support for oil prices. Recent unrest in the country, Africa's biggest crude producer, has slashed its total crude output by some 20.0 percent.
Crude futures have raced higher this week as traders have largely ignored news of healthy US energy stockpiles to concentrate on simmering global political tensions.