* Oil gains nearly $1 on Iran's missile testings
* Iran missile could reach Israel, U.S. bases in region
* U.S. data to show crude stock fall, distillate build
(Recasts with Iran, updates prices)
By Angela Moon
SEOUL, July 9 (Reuters) - Oil rose a dollar on Wednesday,
recovering from a more than $5 fall a day ago, after Iranian
state media reported that the country had test-fired missiles
that could reach Israel and U.S. bases in the region.
U.S. light crude for August delivery <CLc1> earlier rose
more than $1, and was at $136.61 a barrel by 0651 GMT, up 57
cents.
London Brent crude <LCOc1> also jumped more than $1, and
was later at $137.13, up 70 cents.
Oil had lost more than $5 a barrel a day ago on the firmer
dollar and the rally in U.S. shares, drawing cash away from the
commodities complex. U.S. crude had slid nearly $10 from last
Thursday's record high of $145.85 a barrel.
The U.S. dollar was supported after Federal Reserve
Chairman Ben Bernanke had soothed credit concerns by saying the
central bank may keep an emergency lending facility open beyond
December for big Wall Street firms. []
Iran's state media reported that Iran had test-fired nine
long-and medium-range missiles, including one it has previously
said could reach Israel and U.S. bases in the region.
[]
The tests occurred at a time of increased tension between
Iran and Israel over Tehran's nuclear programme, which the West
fears is aimed at making bombs. Iran says its nuclear programme
is for power generation.
Iran, the second-largest oil producer in the Organization
of the Petroleum Exporting Countries, has been sending mixed
signals over its nuclear programme and the possibility for
conflict in the region amid an escalating war of words with
Israel.
An aide to OPEC-member Iran's Supreme Leader was quoted on
Tuesday as saying that Iran would hit Tel Aviv, U.S. shipping
in the Gulf and American interests around the world if it is
attacked over its disputed nuclear activities. []
But President Mahmoud Ahmadinejad had said his country was
not interested in war with either Israel or the U.S., adding
Iran is trying to avoid conflict.
Oil prices are up 42 percent this year, boosted in part by
investors seeking a hedge against inflation and the weakening
dollar, or fleeing a downturn in equity markets, but the latest
recovery in other markets walloped commodities on Tuesday.
"Overall commodities including oil, gold, copper and corn
are seen weakening with the dollar gains," said Ku Ja-Kwon,
chief researcher at Korea National Oil Corp.
Later on Wednesday traders will shift focus to weekly U.S.
oil inventory data expected to show a 1.8 million-barrel
decline in crude stocks, a fall of 200,000 barrels in gasoline
supplies and an increase of 1.9 million barrels in distillates.
[]
(Editing by Ramthan Hussain)
