Oil prices edged higher in Asian trade Monday as major crude producer Iran and Western powers failed to reach agreement over Tehran's nuclear programme, analysts said.

Markets were also supported by signs Greeks would elect a pro-austerity government in upcoming polls, easing concerns the debt-wracked country would exit the eurozone and trigger a global economic crisis.

New York's main contract, West Texas Intermediate crude for delivery in July was up 89 cents to $91.75 per barrel while Brent North Sea crude for July gained 68 cents to $107.51 in the afternoon.

"The Iranian stand-off looks likely it will remain difficult to break down," said Justin Harper, market strategist at IG Markets Singapore.

On Saturday the head of Iran's Atomic Energy Organisation said Tehran had "no reason" to suspend its enrichment of uranium to 20 percent.

The issue of Tehran's uranium enrichment and stockpile had been at the centre of talks last week between Iran and major world powers -- who believe the country's nuclear activities mask a push to build atomic weapons.

Iran, already under heavy sanctions for refusing to suspend its nuclear programme, has denied the accusations and threatened to disrupt Middle East oil supply if it is faced with further sanctions.

"Iran is desperate for oil revenues to return and was hoping its more accommodating attitude would see oil supply bans lifted immediately," said Harper.

"This has back-fired and it is now back to square one as it reverts to its traditional defiant mood," he added.

Prices were also lifted by a slight easing of bearish sentiment over the eurozone's debt troubles, analysts said.

Opinion polls published Sunday showed Greek pro-bailout conservative party New Democracy is expected to secure most seats in the June 17 general elections but without an outright majority.

Such a result would be welcomed by investors who feared that radical left party Syriza -- which rejects austerity measures outright -- would sweep into power.

Oil prices rise on Iran tensions, weaker dollar
London (AFP) May 28, 2012 - Oil prices rose on Monday as major crude producer Iran and Western powers failed to reach agreement over Tehran's nuclear programme and as the dollar weakened against the euro, analysts said.

New York's main contract, West Texas Intermediate crude for delivery in July gained 48 cents to $91.34 a barrel.

Brent North Sea crude for July won 82 cents to $107.65 in London afternoon deals.

The issue of Tehran's uranium enrichment and stockpile had been at the centre of talks last week between Iran and major world powers -- who believe the country's nuclear activities mask a push to build atomic weapons.

Iran, already under heavy sanctions for refusing to suspend its nuclear programme, has denied the accusations and threatened to disrupt Middle East oil supply if it is faced with further sanctions.

"Iran and the Grexit drove oil prices down during the first half of last week, but developments on both issues have turned them into support for oil prices," Tamas Varga, an analyst at brokers PVM Oil Associates, said on Monday.

"It doesn't require a huge understanding of international politics to read Iranian tactics on the nuclear issue, and it was probably naive to think at the beginning of last week that any agreement between Iran and world powers was even remotely possible."

Traders said that oil prices were also supported by a weaker greenback, which makes dollar-denominated crude cheaper for holders of other currencies, boosting demand and in turn prices.

The euro rose versus the dollar after opinion polls indicated a victory for pro-austerity conservatives in an upcoming Greek general election.

The New Democracy party, which backs a deal with the European Union and International Monetary Fund, is tipped to secure most seats in the June 17 general elections but without an outright majority, opinion polls showed on Sunday.

The new polls point to a New Democracy victory ranging between 23.3 percent and 25.8 percent of the vote, a result that would require the party to seek coalition partners to form a viable government.

Even so, such an outcome in next month's vote could mean that Greece would respect the terms of its EU-IMF bail-out and remain a member of the eurozone.