LONDON, Jan 14: Oil prices marched higher on Monday, supported by tensions in crude producers Iran and Nigeria but concerns remained over a possible drop in US energy demand, traders said.

Oil also won support from the weak dollar, which encourages demand for dollar-priced commodities because they become cheaper for investors using stronger currencies.

New York's main contract, light sweet crude for delivery in February, jumped $1.01 to $93.70 per barrel in floor trading.

Brent North Sea crude for February advanced 1.46 dollars to 92.53 dollars.

“Crude futures were higher (on Monday) on worries that Iran, the fourth largest exporter of crude, could cut oil exports to the US,” said Sucden analyst Nimit Khamar.

Oil prices also remain at elevated levels above 90 dollars amid ongoing Nigerian rebel attacks on the country's oil industry in the crude rich Niger Delta region.

“Violence is Nigeria is on the increase and in the short-term, looks like getting worse,” said MF Global analyst Robert Laughlin. —AFP