* IEA sees slower oil demand growth in 2009
* Iran tests more missiles
* Nigeria oil militant group to call off ceasefire
(Adds Iran missile test, analyst comment, updates prices)
By Jane Merriman
LONDON, July 10 (Reuters) - Oil held near $136 a barrel on
Thursday, after falling for three straight sessions, supported
by tensions over Iran.
These were however offset by International Energy Agency
predictions of a more comfortable supply outlook next year.
U.S. crude <CLc1> for August was 53 cents up at $136.58 a
barrel by 1138 GMT. London Brent crude <LCOc1> was 60 cents
firmer at $137.18 a barrel.
Iran tested more missiles in the Gulf on Thursday, while the
United States pledged to defend its allies. []
"A second day of missile tests probably has less impact on
prices than on the first day," said Mike Wittner, analyst at
Societe Generale.
Iran test-fired nine missiles on Wednesday, which it said
included ones that could hit Israel and U.S. bases.
Tensions over Iran have mounted after a big Israeli military
exercise last month. The West fears Iran wants to master
technology to build nuclear weapons.
These tensions boosted gold on Thursday, which was also
supported by sagging equity markets.
Political tensions in the Middle East have played a part in
oil's surge this year to record levels of more than $145 a
barrel.
TOLL ON DEMAND
But high prices are starting to take their toll on demand.
World oil demand growth will slow in 2009 and the need for
oil from the Organization of Petroleum Exporting Countries will
fall, the International Energy Agency said in its monthly
report. []
This could help relieve the perceived tight supply/demand
balance in the world oil market that has contributed to around a
50 percent jump in prices this year.
"We do see the potential for a build in spare capacity in
2009, that should help to improve the situation," said Lawrence
Eagles of the IEA, which advises 27 industrialised countries on
energy policy.
A pledge from Saudi Arabia to increase output this year
could help provide more of a cushion for the market, he said.
"Supplies will still be tight, but less tight than they
were," said Damien Cox of John Hall Associates. "I don't think
it means a massive fall in prices."
Oil has fallen back from a record peak of $145.85 on July 3,
but had found some support from Iran tensions which helped the
market hold above $135.50 a barrel on Wednesday, a key number
for traders who use charts to track price movements.
The main militant group in Nigeria's oil-producing Niger
Delta has said it would call off a ceasefire from midnight on
Saturday after Britain offered to help tackle lawlessness in the
region that has disrupted the country's oil exports.
China's net imports of refined oil products in June rose a
quarter from a year ago, according to official data, offsetting
weak crude import growth in the world's number two consumer.
(Additional reporting by Felcia Loo in Singapore and Barbara
Lewis in London; editing by James Jukwey)
