* 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
(Recasts; updates prices)
NEW YORK, June 30 (Reuters) - Oil prices hit a record high
above $143 a barrel on Monday as mounting tensions between Iran
and Israel stirred supply concerns.
U.S. crude <CLc1> was up 65 cents at $140.86 a barrel by
1:30 p.m. EDT (1730 GMT), as weak U.S. oil demand pulled prices
off a record high $143.67 hit earlier. London Brent crude
<LCOc1> gained 57 cents to trade at $140.88 a barrel.
The U.S. Energy Information Administration revised downward
U.S. April oil demand by 863,000 barrels per day 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 prices rushed to a fresh high on the weaker dollar
and escalating tensions between Iran, a member of the
Organization of Petroleum Exporting Countries, and Israel over
Tehran's nuclear program.
Iran's Revolutionary Guards said Saturday Tehran 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 though 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 would 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. dollar.
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 and
strategy and asset manager for 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 prices have 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 driven mostly 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 Walter Bagley)
