* Oil hits record over $145, up 50 percent since end of 2007
* Tensions between Iran and Israel support
* Dollar steadies after U.S. jobs data, ECB rate hike
(Recasts, updates prices)
By Rebekah Kebede
NEW YORK, July 3 (Reuters) - Oil rushed to record over $145 a
barrel on Thursday ahead of the U.S. independence Day holiday,
extending a rally that has added 50 percent to prices this year.
Escalating tensions between Israel and OPEC nation Iran have
pushed prices to fresh peaks over the past two weeks, with further
support coming from speculators hedging against inflation and a
weakening dollar.
The U.S. oil <CLc1> settled up $1.72 at $145.29 a barrel, after
earlier hitting an all-time intraday high of $145.85. London Brent
<LCOc1> settled at $146.08, up $1.82 after reaching an intraday record of $146.69 a barrel earlier.
"On a long weekend, no one wants to take the risk of being
caught short with all the tension between Iran and Israel," James
Crandell, analyst at Energy Research in New York.
Iran has threatened to block oil shipments through the Strait of
Hormuz in the event it is attacked. Speculation has mounted in
recent weeks that Israel may be preparing a preemptive strike
against Tehran's nuclear program.
Approximately 40 percent of the world's seaborne crude oil trade
passes through the Strait of Hormuz.
The new crude oil record came just ahead of the Fourth of July
holiday weekend, traditionally the peak driving period for motorists
in the nation's largest oil consumer.
Oil has risen nearly 13 percent since the start of June on
concerns about Middle East tensions, tight supplies and investors
buying crude as a hedge against inflation and the falling value of
the dollar.
Crude futures have surged seven-fold since the start of 2002 as
supply struggles to keep pace with demand from emerging nations like
China. The price spike has caused fuel protests around the globe and
hurt demand in consuming nations like the United States.
Saudi Oil Minister Ali al-Naimi reiterated his belief on
Thursday that the current rally in oil prices was being propelled by
speculators rather than any shortage of crude oil. []
Naimi repeated promises that Saudi Arabia would pump more oil if
there was demand for it.
Oil refiners in the United States and Asia have said official
Saudi prices make it uneconomical to buy more barrels.
U.S. payroll data released Thursday suggested the job market had
not deteriorated as much as many investors had feared, helping the
dollar recover from a two-month low against the euro hit earlier in
the day.[]
Comments from the head of the European Central Bank that
suggested further interest rate increases in Europe could be put on
hold also supported the greenback. []
Tropical Storm Bertha, which formed on Thursday in the eastern
Atlantic Ocean, was not expected to threaten any U.S. oil and gas
production facilities in Gulf of Mexico. []
Hurricane experts have predicted an above-average number of
storms and hurricanes through the U.S. hurricane season, which began
June 1 and runs through the end of November.
(Additional reporting by Matthew Robinson and Robert Campbell in
New York, by Ikuko Kao and Alastair Sharp in London and Chua Baizhen
in Singapore; editing by Marguerita Choy)
