AFP reported that crude prices rose in Asian trade ahead of a crunch European Union summit on eurozone debt but doubts linger over whether leaders can come up with a solution to the crisis.
Analysts said that New York's main contract, light sweet crude for delivery in January rose 16 cents to USD 100.65 per barrel. Brent North Sea crude for January delivery gained 47 cents to USD 110.00.
Mr Sanjeev Gupta head of Ernst & Young's Asia Pacific oil and gas practice in Singapore said that prices were capped by diminished expectations for the upcoming EU summit.
European leaders were to meet in Brussels later Thursday for a two day summit centered on finding a lasting solution to the two year old debt crisis which has roiled global markets.
Despite worries over the eurozone, prices are being supported by the ongoing concerns about Iran with Europe looking to impose an embargo on imports of the country's oil due to concerns over Tehran's nuclear ambitions.
Barclays Capital said that "The geopolitical risks posed by Iran continue to tilt the price balance to the upside."
Mr Abdullah El Badri secretary general of Organization of Petroleum Exporting Countries expressed hope that the EU would refrain from sanctions on Iranian oil exports. Iran is one of OPEC's major members and exports 865,000 barrels per day to the whole of Europe.
