RPT-UPDATE 3-Oil hits new peak on dollar, supply concerns

                                
 * Oil hits new record on dollar slump, U.S. crude stock
drop
                                
 * Traders await European Central Bank meeting
                                
 * Israel-Iran tension adds support
 (Updates prices)
                                
 By Chua Baizhen
                                
 SINGAPORE, July 3 (Reuters) - Oil jumped about $1 to fresh
records on Thursday, as the dollar fell on gloomy U.S. jobs
data and a broad equity sell-off, while a higher-than-expected
fall in U.S. crude stocks raised supply concerns.
                                
 London Brent crude <LCOc1> rose as much as $1.49 to a
record of $145.75 a barrel. It was up $1.34 at $145.60 by 0715
GMT.
                                
 U.S. crude <CLc1> rose as much as $1.00 to an all-time high
of $144.57 a barrel, before easing back to $144.54.
                                
 The dollar hit a two-month low against the euro on
Thursday, after a report a day ago showed U.S. private
employers cut the most jobs in nearly six years and as the U.S.
Dow Jones industrial average <.DJI> sank into bear market
[ID:nT338053]
                                
 Later on Thursday, traders will focus on the outcome of a
European Central Bank meeting due at 1145 GMT, which may result
in an interest rate hike that could weaken the U.S. dollar
further.
                                
 Oil has risen more than 50 percent this year, helped by
inflows of speculative money as investors seek to hedge against
the falling dollar and inflation.
                                
 "We have the weaker U.S. dollar, the reduction in U.S. oil
stocks... We may see a bit of profit taking tonight but it all
depends on the U.S. dollar," said Gerard Rigby of Fuel First
Consulting in Sydney.
                                
 In the latest of a series of news this week which stoked
supply concerns, official data showed U.S. crude oil stocks
fell more than expected last week, down 2 million barrels to
299.8 million barrels, putting commercial inventories below 300
million barrels for the first time since January. [EIA/S]
                                
 Oil prices have jumped seven-fold since 2002, as demand
from emerging economies such as China and India stretches
supply growth.
                                
For a graphic on global oil prices and U.S. oil stocks,
click on:
https://customers.reuters.com/d/graphics/MKTS_OILSTX0708.gif
                                
 In the Middle East, fears of an escalation in the tensions
between Iran and the West over Tehran's nuclear programme
continued to support oil prices.
                                
 The United States has said it would defend shipping in the
Gulf if Iran made good on threats to block the Strait of
Hormuz, in the event OPEC's No.2 producer was attacked.
[ID:nL02393846]
                                
 Forty percent of the world's seaborne oil passes through
the Strait.
                                
 But Iranian Foreign Minister Manouchehr Mottaki struck a
conciliatory tone on Wednesday, saying Tehran would reply
shortly to an offer from Western powers designed to curb its
nuclear work. [ID:nN02379952]
                                
 Western nations say Iran's nuclear programme is aimed at
developing atomic weapons, while Tehran insists it has only
peaceful purposes.
 (Editing by Ramthan Hussain and Sanjeev Miglani)