Crude futures had jumped higher on Friday on resurgent concerns about the Iranian nuclear energy row, as Israel's deputy Prime Minister, Shaul Mofaz, said Tehran was playing for time.

Iranian issue remains fluid and it looks like more sanctions will be imposed by the world powers and they will likely raise tensions over Iran," said Victor Shum, a Singapore-based analyst at Purvin and Gertz.

Iran is the world's fourth-largest crude oil producer and traders fear supply disruptions from the Islamic republic if tensions between Tehran and the West heighten over its controversial nuclear programme.

Tensions over Iran's nuclear program helped push oil prices to record levels above 147 dollars per barrel last month.

Meanwhile, a new storm brewing in the Gulf of Mexico, where key US energy facilities are located, added to supply jitters, dealers said.

Daily chart shows that $120 is a good support level. Indicator is pointing up for oil.

I will be interested to buy oil at around $122 - $123 and place a stop below $120.

However do take note that FOMC will be announcing their interest rate decision tomorrow and oil inventory announcement on Wednesday, so we have to expect volatility.

In my view ForexYard offers the best platform for retail customer who do not want to take too much risk in oil trading because they offer supermini oil contract.

Value of $1 is only $100. So say you bought 100 units of oil at $122 and place a stop at $119.50, maximum potential loss is only (122 - 119.50) x 100 = US$250. Choose standard account in account opening.

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