* Oil holds above $145, up 50 pct this year
* Dollar inches up after U.S. jobs data, ECB rate hike
* Iran-Israel tension supports prices
(Updates oil prices, dollar movement)
By Chua Baizhen
SINGAPORE, July 4 (Reuters) - Oil steadied above $145 a
barrel on Friday as the United States, the world's largest
consumer, heads into the Independence Day long weekend, pausing
after the previous day's rally to a record near $146.
U.S. crude oil <CLc1> inched up 6 cents to $145.35 a barrel
by 0525 GMT, off an all-time high of $145.85 hit on Thursday.
The contract has risen more than 50 percent this year.
London Brent <LCOc1> gained 15 cents to $146.23, near the
record $146.69 touched a day ago.
Heightened tension between Israel and OPEC's second-biggest
producer Iran has put oil prices on the boil over the last two
weeks, helping crude smash records five times in the past seven
sessions.
Analysts said bullish investors have rushed into crude
ahead of the Fourth of July holiday, traditionally the peak
U.S. driving period, as they do not want to be caught short
should the Iran-Israel row escalates.
"There weren't many changes in the situation. I think the
current market is driven by speculative money, not by
fundamentals," said Takeda Makoto, an analyst at Bansei
Securities.
Speculation has mounted in recent weeks that Israel may be
preparing a preemptive strike against Tehran's nuclear
programme.
Iran has threatened to block oil shipments through the
Strait of Hormuz if it were attacked. Approximately 40 percent
of the world's seaborne crude oil trade passes through that
Strait.
Concerns of tight supplies and money inflows from investors
buying crude as a hedge against inflation, and a weakened
dollar also lent support.
Saudi Oil Minister Ali al-Naimi reiterated his belief that
the current oil rally was driven by speculators rather than any
shortage of crude oil. He repeated promises that Saudi Arabia
would pump more oil if there was demand. []
Oil refiners in the United States and Asia have said
official Saudi prices make it uneconomical to buy more barrels.
Venezuelan President Hugo Chavez said that a price of $100
per barrel for oil is "more than enough".
"If it were up to us, $100 per barrel would be more than
enough, but it's not our fault," Chavez said during a televised
address. []
Crude prices have surged seven-fold since the start of 2002
as supply struggles to keep up with demand from emerging
nations like China. The price spike has caused fuel protests
worldwide and hurt demand in consuming nations like the United
States.
On Friday, the dollar steadied against the euro and weighed
on oil prices, as the greenback kept most of the sharp gains
made a day ago after U.S. payroll data came in close to
expectations and eased fears about the health of the U.S. job
market and economy. []
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 U.S. currency. []
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 on June 1 and runs through the end of November.
(Editing by Sanjeev Miglani)
