Reply #13: Oil holds near $76 on Mideast tension

[UpInArms]

http://www.reuters.com/article/hotStocksNews/idUSSP5715420070907

LONDON (Reuters) - Oil held near $76 a barrel on Friday, within sight of a record high, as renewed tension in the Middle East compounded supply worries after further declines in U.S. fuel inventories.

Crude inventories in top consumer the United States fell by a higher-than-expected 3.9 million barrels last week. Syria accused Israel of bombing its territory on Thursday and warned it could respond.

"It is still a bull trend with major concerns about U.S. oil stock levels, though there are concerns over the U.S. economy slowing," said Gerard Rigby from Fuel First Consulting in Sydney. "There may be profit-taking when prices hit $78 a barrel."

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"Recent price action appears a good reflection of the current market environment characterized by a combination of firming fundamentals, geopolitical tensions and growing nervousness ahead of next week's OPEC meeting," Barclays Capital said in a report.

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