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Oil above $75 after profit taking
Published on Tue, Jul 18, 2006 at 11:45, Updated on Tue, Jul 18, 2006 at 12:55 in 
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Singapore: Oil held firm above $75 a barrel on Tuesday after a profit-taking slump, supported by accelerating economic expansion in number-two oil consumer China and the risk of expanding Middle East violence.
US light sweet crude for August delivery rose 15 cents to $75.45 a barrel by 0327 GMT, taking pause from Monday's 2.25 per cent dive amid a commodity-wide rout that knocked gold 2 percent lower and hammered copper 3 per cent.
Brent crude for September gained 6 cents to $75.98 a barrel.
Oil prices are nearly $3 below last Friday's record-high of $78.40 after dealers took some relief that mounting violence between Israel and Hezbollah had not yet engulfed oil-rich neighbours.
But analysts warned against complacency.
"There is the danger that the Middle East situation could spin out of control, but there is also a good chance that things will settle down," said Tony Nunan, a risk manager at Mitsubishi Corp in Tokyo.
World efforts to defuse the growing crisis have yet to show any signs of ending Israel's week-long assault in retaliation against Hezbollah attacks.
On Tuesday warplane attacks on south Lebanon killed six people, taking the toll to 210.
Hezbollah, the guerrilla group that is backed by Syria and Iran and is part of Lebanon's government, has attacked a naval vessel and fired hundreds of rockets at northern Israel.
Oil traders fear the violence, triggered when Hezbollah seized two Israeli soldiers and killed eight on July 12, could engulf major regional crude oil producers, who provide nearly a third of the world's oil.
Lebanon has repeatedly called for an immediate ceasefire, but world powers said any solution to the crisis must include the release of the two soldiers.
Israel also wants Hezbollah to disarm in line with United Nations Security Council resolutions.
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