LONDON - World oil prices rose further on Friday helped by a weaker dollar, steps taken by Spain to help reduce its debt mountain and on Middle East tensions, analysts said.

Brent North Sea crude for delivery in November climbed $1.05 to $113.06 a barrel in London midday trading. New York’s main contract, light sweet crude for November, was up 53 cents to $92.38 a barrel.

“Factors which contributed majorly to the price increase include brightening of sentiment on the financial markets and a weaker US dollar after Spain approved a comprehensive raft of austerity measures, which could pave the way for possible financial aid,” said Commerzbank analyst Carsten Fritsch.

The euro rose against the dollar on Friday as Spain prepared to publish an audit of its stricken banks and a day after a fresh Spanish austerity budget amid fears Madrid needs a full sovereign bailout.

A weaker US currency makes dollar-denominated crude cheaper for buyers using rival currencies, pushing up demand.

Oil prices were also winning support from Middle East tensions according to traders.

“Tensions between Iran and the West reinforced concerns about potential supply disruptions,” Phillip Futures said in a market commentary.

“Israeli Prime Minister Benjamin Netanyahu drew his ‘red line’ for Iran’s nuclear programme in a speech at the United Nations... and voiced confidence the United States shares his view,” it added.

Western powers have been pressuring oil producer Iran to halt its nuclear programme but Tehran has insisted its efforts were solely for peaceful purposes.

Oil prices began recovering on Thursday, a day after New York crude hit a near two-month low under $89 as investors fretted over demand concerns linked to the eurozone crisis.