LONDON -- Oil rose above $61 on Jan. 2 as Iran refused to comply with a United Nations resolution to stop its nuclear programme, but mild weather in the United States limited gains.
Oil markets in Japan and Singapore were shut for a holiday.
Trading floors in New York will also remain closed to honour the memory of former U.S. President Gerald Ford.
"We don't expect to see any dramatic moves this week, as many players are away, but markets should be back in full swing by next week," Edward Meir of Man Financial said in a research note.
U.S. crude climbed 23 cents at $61.28 by 1446 GMT in Globex electronic trading, adding to Friday's 52-cent gain.
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London Brent crude prices rose 55 cents to $61.41.
Prices found support from Iran's continued resistance to a U.N. resolution that imposes trade sanctions on the country for its uranium enrichment work.
President Mahmoud Ahmadinejad said on Tuesday that Iran would not retreat from its right to nuclear technology and that the U.N. resolution was "invalid."
Iran's oil minister last week said the world's fourth largest crude producer would use any weapon, including oil exports, to defend itself.
"We continue to see the dispute over Iran's nuclear ambitions as a key bullish factor for oil in the year ahead," said Kevin Norrish of Barclays Capital.
Iran's rhetoric helped offset unseasonably mild weather in the U.S. Northeast, which has depressed demand in the world's top heating oil market.
Weather forecaster DTN Meteorlogix predicted temperatures in the U.S. Northeast would be as much as 16 degrees Fahrenheit (8 degrees Celsius) above normal this week.
Many forecasters predict warmer-than-average temperatures will linger until next week.
U.S. oil prices on Friday settled the year at $61.05 a barrel, one cent higher than the final day of trading in 2005. NYMEX has fallen more than $17 since its record of $78.40 in July, and averaged $66.24 in 2006.
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