Oil prices rise on Iran fears, U.S. rebound

Oil prices posted a modest rise Monday, tracking a Wall Street stock rebound and amid geopolitical concerns as key producer Iran test-fired missiles ahead of talks over its atomic program.

New York's main contract, light sweet crude for November delivery, rose US$0.82 from Friday's close to US$66.84 per barrel.

London's Brent North Sea crude for delivery in November gained US$0.43 to US$65.54 a barrel.

The modest price rise was "a technical rebound" after falling last week, said Jason Schenker of Luxury Economics as Wall Street shares roared back Monday after a poor showing last week, boosted by a pick-up in corporate news.

Oil futures dropped nearly eight percent over two days last week, after the U.S. Energy Department unexpectedly reported a big increase in oil and gasoline inventories.

But prices swung higher Friday as world leaders demanded that nuclear inspectors from the International Atomic Energy Agency (IAEA) be granted access to a previously secret Iranian plant and threatened to impose tough new sanctions on Tehran.

On Monday, Iran, the third biggest global oil exporter after Russia and Saudi Arabia, test-fired long-range missiles that it says could reach targets inside Israel.