New York's main futures contract, light sweet crude for delivery in March, added 35 cents to close at 80.16 dollars a barrel as the contract expired.

It was the fifth consecutive session of gains for the benchmark contract as oil prices rallied on growing signs of global economic recovery.

In London, Brent North Sea crude for April delivery gained 42 cents to settle at 78.19 dollars a barrel.

"The March crude contract is going out like a February lion," said Phil Flynn of PFG Best.

The contract "poked above 80 dollars a barrel on a slew of supply-related issues that have crept up, raising worries that the combination of these things may cut into the global oil supply glut," he said.

Analysts pointed out rising concerns about Iran's nuclear program development, which the United States and other countries allege is aimed at building nuclear weapons.

The US said Monday that Iran's plan to build two new uranium enrichment plants is "further evidence" it rejects engagement with the international community.

The US and other world powers are drumming up support for a fourth round of United Nations sanctions against Iran for its refusal to comply with repeated ultimatums to suspend uranium enrichment and agree to a UN-backed nuclear fuel deal.

"The Iranian nuclear dispute just won't go away," said Mike Fitzpatrick, energy analyst at MF Global.

"The leadership keeps upping the ante. While action does not appear imminent, the potential threat to supply is obvious and must be part of the calculus, but to what degree is impossible to quantify."

The oil market also was watching developments in France, where an open-ended strike by workers at energy giant Total entered a sixth day Monday and gasoline supplies were drying up.

"The sentiment is quite bullish at this time because of the refinery strikes in France and the concerns over Iran's nuclear issues," said Victor Shum, an analyst at Purvin and Gertz energy consultants.

Striking refinery workers sought to choke off the fuel supply to force Total, the world's sixth-largest oil firm by sales, to guarantee their jobs.

The CGT, a key union, has also called for a strike on Tuesday at the two refineries in France run by ExxonMobil, the biggest US oil company.

After the strike sparked a weekend run on petrol pumps, the French Petroleum Industry Union estimated on Monday that France's depots had only seven to 10 days' worth of stocks left, its president Jean-Louis Schilansky told AFP.

Industry Minister Christian Estrosi said in a radio interview Monday that "the government will take measures so that France will not get stuck" without gasoline. Total supplies about half of France's filling stations.

Under pressure from the government to safeguard jobs, Total has insisted it will not close the Dunkirk plant permanently, nor any other refineries, nor cut any posts. The company agreed to meet with the unions Tuesday.

Fitzpatrick cautioned that the market upswing was relatively fragile.

"While positive influences remain numerous, offsetting elements proliferate, as well. This is why we think momentum could disappear at any time," he said.

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