A strike by offshore oil workers in Norway , western Europe's largest oil producer and exporter, could provide further support for Brent crude prices if it continues to crimp oil production, traders said Tuesday.

Brent crude has rallied $8.35, or 9.2%, to $99.32 a barrel since June 22, the trading session before the strike started. Other factors, such as the growing tensions between Iran and the West and hopes that central banks will provide liquidity boosts to markets have contributed to the rise. Market participants say if unions and oil companies don't reach an agreement soon, this will add to the upward momentum of prices.

"A recovery back up above $100 looks on the cards," said Tony Machacek, an energy broker at Jefferies Bache Ltd. "We're not that far away."

The strike, over pensions, is already affecting 15% of Norway 's oil production, or 230,000 barrels of oil a day. The strike has also affected 7% of its natural gas output, or 11.9 million cubic meters of natural gas a day, according to the country's Oil Industry Association.

One North Sea trader said delays to loading programs of Oseberg, a grade of North Sea crude from Norway , would be likely if strikes continue. The trader said, though, that she hadn't seen any official delays yet.

A second trader said the strike will likely provide support to prices in the North Sea physical market. He added: "I think the latest rumblings from Iran are providing support too, plus healthy refining margins."

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