NEW YORK: Brent crude oil traded near nine-month highs on Wednesday as supportive Iran-related tensions and supply worries outmatched pressure from weak economic data in Europe and China, which cast doubt on future global growth.

U.S. crude futures were stuck in negative territory on profit-taking that followed after front-month April topped $106, a fresh nine-month high, analysts said.

In London, ICE Brent crude for April delivery was up 99 cents at $122.65 a barrel, by 12:40 p.m. EST (1740 GMT). The contract was up during most of the U.S. session then accelerated to $123.07, the highest since the $125.02 intraday peak on May 3 last year.

U.S. April crude was down 50 cents at $105.75 a barrel, after climbing to a session high of $106.47, the highest intraday price for front-month NYMEX crude since $109.38 on May 5 last year.

The March contract, which expired on Tuesday, closed at $105.84 a barrel, the highest settlement for front-month NYMEX crude since May 4.

Brent crude's premium against U.S. crude bounced back to near $17, after closing at $15.41 on Tuesday.

U.S. crude's Relative Strength Index (RSI) crept to just above 70 on Wednesday, which is the threshold for overbought conditions, according to Reuters data, and that triggered some profit-taking which knocked prices back from the new peak.

IRAN IN FOCUS

The U.N. nuclear watchdog ended its latest mission to Iran after talks on Tehran's suspected secret atomic weapons research failed, a setback likely to increase the risk of confrontation with the West.

Russia warned Israel not to attack Iran over its nuclear program, saying on Wednesday that military action would have catastrophic consequences.

"We've got a tug of war here between Iran tensions and slowing global economic growth," said Mark Waggoner, president of Excel Futures in Bend, Oregon.

As tensions between Iran and the West over Tehran's disputed nuclear program have escalated, Asian and Europe buyers of Iranian crude are cutting purchases as tightening U.S. sanctions make it difficult to deal with Iran.

The European Union has imposed a ban on Iranian crude, to take effect on July 1 to allow member nations to look for alternative sources.

EUROPE, CHINA DATA DISAPPOINTS

The euro zone's service sector shrank unexpectedly this month, reviving fears that the region's economy risks sinking into recession, the Markit Eurozone Services Purchasing Managers' Index showed.

China's manufacturing sector contracted in February for a fourth straight month as new export orders dropped sharply due to the euro zone debt crisis, dampening the economic growth outlook in the world's second-largest oil user.

Commodities had rallied at the start of the week after Beijing cranked up credit on Saturday by lowering the amount of cash banksmush hold in reserves.

U.S. INVENTORIES

Oil investors will focus next on U.S. inventory reports, the first of which will come from the industry group American Petroleum Institute at 4:30 p.m. EST (2130 GMT).

A Reuters poll ahead of the report forecast that U.S. crude stockpiles fell 400,000 barrels last week. The poll also showed forecasts for a 1.1-million barrel decline in distillate stocks and a 300,000-barrel rise in gasoline supplies.

The U.S. Energy Information Administration will release its report on Thursday at 11 a.m. EST (1600 GMT). Both inventory reports are delayed a day due to Monday's President Day holiday.