* Weak dollar, Iran tensions push oil to record above $143
* U.S. oil demand revised sharply lower for April
* Saudi says ready to supply all customer requirements
(Updates throughout, changes dateline from LONDON)
NEW YORK, June 30 (Reuters) - Oil slipped off a record high
above $143 a barrel on Monday as weak U.S. demand countered
mounting tensions between OPEC nation Iran and Israel.
U.S. crude <CLc1> rose 11 cents to $140.32 a barrel by 12:12
p.m. EDT (1612 GMT), off the record high $143.67 hit earlier.
London Brent crude <LCOc1> gained 28 cents to trade at $140.59 a
barrel.
The U.S. Energy Information Administration revised down U.S.
April oil demand by 863,000 barrels per day (bpd) to 19.77
million bpd -- 3.9 percent below year-ago levels -- as surging
fuel costs erode demand in the world's top consumer.
The revision showed April demand was the lowest for the
month since April 2002, and came even before prices scaled to
new highs in June. []
"This revision of the U.S. oil demand for April has
certainly put pressure on crude futures. This is demand
destruction before our very eyes," said Phil Flynn of Alaron
Trading.
"This is a huge revision and it happened when (fuel) prices
were still lower, so you can expect that there could be more
future downgrades in demand data."
Crude had earlier hit a fresh high on the weaker dollar and
escalating tensions between Iran and Israel over Tehran's
nuclear program.
Iran's Revolutionary Guards said Saturday the OPEC member
would impose controls on shipping in the Persian Gulf and Strait
of Hormuz if it were attacked. Roughly 40 percent of the world's
traded oil flows flows thought the narrow waterway separating
Iran from the Arabian Peninsula. []
The U.S. Navy's Fifth Fleet said on Monday the United States
and its allies will not allow Iran to hamper shipping in the
Gulf. [] Iran's foreign minister said Sunday he did
not believe Israel was in a position to attack.
Tehran's dispute with the West over its nuclear development
program has supported oil's steep rise this year, as has an
influx of cash from investors seeking to hedge against inflation
and the slumping U.S. greenback.
Oil prices have jumped nearly seven-fold since 2002 as part
of a broader commodities rally sparked by surging demand from
emerging economies like China and India.
"Demand from the investment side has been boosted by
problems in the financial sector as well as a desire for
diversification," said Frances Hudson, investment director,
strategy and asset manager Standard Life Investments.
"Also, inflation concerns encourage investment in real
assets such as oil and gold."
Inflation in the euro zone rose to a record high of 4
percent in June, data showed Monday. []
Oil has risen more than 40 percent this year, extending a
six-year rally, in response to the Middle East tensions, plus
expectations that supply will struggle to keep pace with rising
demand from emerging economies such as China and India.
Saudi Oil Minister Ali al-Naimi reiterated his country's
position that oil prices were being mostly driven by speculation
and said the OPEC kingpin was prepared to supply all the oil its
customers needed.
The heads of some of the biggest oil companies, gathered at
an oil conference in Madrid, said fundamentals, not investor
flows, were the main driver of prices.
"This is a fundamental signal, this is not about
speculation," said Tony Hayward, chief executive of BP Plc
<BP.L>.
(Reporting by Matthew Robinson, Gene Ramos, Robert Gibbons in
New York; Jane Merriman in London; Fayen Wong in Perth; editing
by Matthew Lewis)
