Oil prices were mixed in Asian trade Tuesday as traders weighed geopolitical tensions over crude producer Iran's nuclear programme and weak economic data from Europe and China.
New York's main contract, light sweet crude for delivery in April, gained four cents to $106.76, while Brent North Sea crude for April was down 17 cents to $123.63 in the afternoon.
Phillip Futures in a market commentary said oil prices were "in tug-of-war trading as supply risks and tensions over Iran's nuclear programme provided support, but concerns about global economic growth limited gains."
Prime Minister Benjamin Netanyahu on Monday told US President Barack Obama that Israel must remain the "master of its fate" in a firm defence of his right to mount a unilateral strike on Iran.
Israeli leaders are worried that despite their potency, increasingly tough US and European sanctions on Iran and its central bank and vital petroleum industry will not convince Tehran to renounce a nuclear arsenal.
Israel is eager to move quickly and decisively using a military strike before Tehran reaches a point when it could quickly produce weapons-grade uranium.
Iran has so far insisted that its nuclear programme is solely for peaceful civilian purposes.
Traders are also keeping a close watch on economic data indicating weakening growth in Europe and China, analysts said.
Chinese Premier Wen Jiabao said on Monday that the country was targeting growth of 7.5 percent in 2012, a third straight reduction as the world's number two economy is buffeted by ongoing troubles in the West and high oil prices.
In Europe, a composite purchasing manager's index compiled by research firm Markit showed eurozone private sector activity falling in February after returning to growth in January underlining predictions of recession.
The index fell to 49.3 points in February from 50.4 points in January but was still up from 48.3 points in December.
Any score above 50 points indicates growth, while a score below indicates contraction.
"Much of the policy emphasis in Europe has been on capping fiscal deficits and the growth outlook there remains notably weak for that reason," DBS Bank said in a note.
"Growth in the periphery… where budgets are contracting much more severely, will be far worse. Greece is headed for a third year of sharply negative growth and whether it stays in the euro remains an open question," it said.
