Brent crude rose slightly to trade above $108 on Tuesday, supported by supply disruptions in Syria and Iranian naval exercises in a key shipping lane, while improved US home sales data also supported prices.      

Brent, which rose 34 cents to an intraday high of $108.30 per barrel, was trading up 25 cents at $108.21 at 0337 GMT. US crude climbed 9 cents to $99.77 a barrel.

"Syria could be a support factor for the time being, but we will not see a big climb or rocket high prices because of that," Ken Hasegawa, a derivatives manager with brokerage Newedge in Tokyo, said.     

"So far supply disruptions have not been a big issue because of some easing of demand in Europe. This has offset the disruption of supplies."     

Syrian Oil Minister Sufian Alao said on Saturday that his country's oil production had fallen by about 30 to 35 percent as a result of sanctions imposed on Syria over its nine-month crackdown on anti-government protests.      

Also adding to supply worries were Iran naval exercises. Iran on Saturday began 10 days of naval exercises in the Strait of Hormuz, raising concern about a possible closure of the world's most strategic oil transit channel in the event of any outbreak of military conflict between Tehran and the West.

But Hasegawa said this has a limited impact on prices for now as there was plenty of supply from the Opec countries.

Kuwait produced more than 3 million barrels of oil in December and expects that rate to continue if demand exists, its oil minister Mohammad al-Busairi said on Sunday after a meeting of Gulf Arab oil ministers in Abu Dhabi.

UK consultancy Oil Movements had also said last week that Seaborne oil exports from Opec, excluding Angola and Ecuador, will rise by 400,000 barrels per day (bpd) in the four weeks to Jan. 7, to reach 23.63 million bpd on average.

The higher supplies come at a time when investors are worried about demand from Europe taking a hit given the region's crippling debt crisis.   -Reuters