LONDON, Dec 31: Oil prices rose solidly on Monday, pushed higher by concerns about instability in Pakistan and tensions on the Turkish border with oil-rich Iraq, dealers said.

The mass unrest in Pakistan following the assassination of opposition leader Benazir Bhutto last week was leading traders to price in a risk premium, they said.

New York’s main contract, light sweet crude for February, gained 50 cents to 96.50 dollars per barrel in light trading ahead of the New Year.

In London, Brent North Sea crude for February delivery shot up 1.14 dollars to 95.02 dollars.

On Friday, the New York contract had struck a one-month high of 97.92 dollars, coming close to the record peak of 99.29 dollars reached on November 21.

New York prices had briefly approached 98 dollars late last week after the assassination of Bhutto, before slipping on profit-taking.

“Further unrest, which looks inevitable at this stage, could keep energy prices well bid over the short-term,” said Ed Meir, an analyst at MF Global.

Owing to the unrest, upcoming elections in Pakistan would be delayed by at least four weeks, a cabinet official told AFP on Monday.

Other government and election officials confirmed that the January 8 polls would be postponed.

“Political unrest around the world has once again become a major factor”for the oil market, said David Johnson, an analyst with Macquarie Securities.

Tension along Turkey’s border with northern Iraq has added to concerns about geopolitical instability, Johnson added.

From a low point of just below 50 dollars in January, oil prices doubled in 2007. Prices are also being supported by lingering concerns about supply during the current northern hemisphere winter.

Analysts are forecasting oil to break through 100 dollars in 2008 as crude faces strong demand and tight supplies amid robust economic growth in China and tensions in oil-producing regions. —AFP