Oil was higher in Asian trade today, supported by improved sentiment on the US economy and continued concerns over tensions between Iran and the West, analysts said.
New York's main contract, West Texas Intermediate crude for delivery in April, gained 56 cents to $106.90 per barrel while Brent North Sea crude for April settlement was up 48 cents at $125.82.
"Oil prices have gone up... Generally because of supporting signs of growing demand and US economic growth," said Tetsu Emori, fund manager at Astmax asset management in Tokyo.
Hopes for higher crude consumption were lifted after data released last week showed the US economy added more than 200,000 jobs for the third straight month in February.
The US is the world's largest oil user.
Meanwhile, traders are also keeping a close watch on the tense situation between major crude producer Iran and the West, analysts said.
Kuwaiti oil minister Hani Hussein said Iran's threat to close the Strait of Hormuz was a major cause for concern, along with the euro zone debt crisis.
"The threats regarding the Strait of Hormuz, as well as the euro zone crisis, speculators and price increases are making the situation more complex," he said in a television interview on Sunday, according to KUNA state news agency.
Iranian officials had in January warned they could close the strategic transit route if increased Western sanctions over Tehran's controversial nuclear programme halt Iranian oil exports, triggering further US measures.
One fifth of the world's oil supplies pass through the strait.