Thursday July 10, 1:55 am ET
By Eileen Ng, Associated Press Writer Oil edges back toward $137 on Middle East tension, drop in US crude inventories
KUALA LUMPUR, Malaysia (AP) -- Oil edged back toward $137 a barrel Thursday in Asia amid lingering concerns over Iran's nuclear conflict and reports of lower-than-expected U.S. oil stockpiles.
"The bull run is really not over yet. The Iranian nuclear situation remains fluid and the market faces supply-side risks with global demand outpacing supply," said Victor Shum, an oil analyst with Purvin & Gertz in Singapore. ; "It remains likely that pricing will gain strength and rise to a new peak in the coming weeks," he said.
Midday in Singapore, light, sweet crude for August delivery was up 37 cents at $136.42 in electronic trading on the New York Mercantile Exchange.
The contract seesawed Wednesday in the floor session before settling a penny higher at $136.05, ending two days of sharp declines that left prices 6.4 percent below last week's record high.
