Oil prices rose on Tuesday as markets focused on the eurozone debt crisis and geopolitical tensions surrounding Iran on the eve of a UN report on the country’s nuclear ambitions.

Oil prices rose on Tuesday as markets focused on the eurozone debt crisis and geopolitical tensions surrounding major crude producer Iran on the eve of a UN report on the country's nuclear ambitions.

Elsewhere, OPEC raised its medium- and long-term forecasts for oil output, but warned that uncertainty over energy and environmental policy was confusing the picture and could affect investment.

New York's main contract, light sweet crude for delivery in December, climbed one dollar to $96.52 a barrel.

Brent North Sea crude for December gained $1.28 to $115.84 in late London deals.

Oil futures rose in line with European stock markets, as investors hoped for a positive outcome to the eurozone debt crisis despite acute concern over fallout from Italy's debt mountain.

Oil prices were also winning support from unrest in Nigeria, analysts said.

The African producer and exporter of oil was on high alert after the United States warned of fresh attacks following a wave of deadly blasts claimed by extremists that killed 150 people in the northeast of the country.