Oil prices rose this evening as tensions rose over Iran's nuclear programme and OPEC boosted its demand forecast.
US crude rose 56 cents to $96.08 a barrel - its highest level in more than three months. Brent crude rose $1.22 to $115.78 in London.
Prices rose as Iran's president vowed to press ahead with the country's nuclear programme. The United Nations is expected to report this week that Iran has been studying nuclear weapons.
Meanwhile, OPEC boosted its medium-term forecast for global oil demand to 92.9 million barrels per day by 2015, up 1.9 million barrels from the previous forecast.
But the cartel warned that uncertainty over energy and environmental policy was confusing the picture and could affect investment.
The world economy recovered more quickly than predicted in last year's report, thanks to stimulus packages and the contribution of developing countries. But OPEC warned that the pace of recovery was slowing again with potentially major repercussions on oil demand.
As states develop strategies to combat climate change and push for renewable energy, the picture was also becoming increasingly unpredictable and this could deter investors, said the cartel, which pumps some 40% of the world's oil.
"The energy and environmental policies of consuming countries ... offer a hazy picture of their impact on future oil consumption, supply levels and overall energy demand," OPEC secretary-general Abdullah El-Badri said in the report.
