May 5 (Bloomberg) -- Crude oil rose in New York on concern that production disruptions in Nigeria may limit supplies and Iran is heading toward further conflict with the U.S. over its nuclear program.

Rebel attacks on an oil-transfer facility in Africa's biggest producer have forced Royal Dutch Shell Plc to reduce output, the Associated Press reported May 3, citing the company. Iran, the world's fourth largest producer, will move forward with its nuclear program, Agence-France Presse reported yesterday, citing the country's supreme leader.

``These kind of geopolitical uncertainties will keep prices supported in the near future,'' said Eugen Weinberg, senior commodity analyst at Commerzbank AG in Frankfurt. ``Nigeria has been producing for months now under its capacity so this is a major concern.''

Crude oil for June delivery rose as much as $1.01, or 0.9 percent, to $117.33 a barrel in after-hours electronic trading on the New York Mercantile Exchange. It was at $117.18 at 9:36 a.m. in London.

Iran won't ``back down'' in its efforts to develop a nuclear program, AFP said, citing Supreme Leader Ayatollah Ali Khamenei in a speech. Iran claims that the atomic undertaking is to create electricity while the U.S. alleges the country is seeking weapons.

The U.S. and its United Nations partners will offer Iran a new package of incentives to suspend uranium enrichment, U.K. Foreign Secretary David Miliband said on May 2.

MEND Attacks

Brent crude oil for June settlement rose as much as $1.07, or 0.9 percent, to $115.63 a barrel on London's ICE Futures Europe exchange. It was at $115.48 a barrel at 9:37 a.m. in London.

The Movement for the Emancipation of the Niger Delta has attacked Shell-operated pipelines in Nigeria, forcing the company to halt 170,000 barrels a day of exports of Bonny Light crude.

The group last month said it will continue its campaign to attack every oil and gas pipeline in the nation as part of its ``Operation Cyclone'' campaign.

To contact the reporter on this story: Christian Schmollinger in Singapore at christian.s@bloomberg.net.

Last Updated: May 5, 2008 04:40 EDT