Oil prices edged firmer today to end a week of backsliding from record highs sparked by the Lebanon conflict after Israel's army was reported as calling up its reservists.
The report was carried by the Israeli YNET news website as speculation grew Israel may be preparing for a ground invasion of Lebanon.
Traders said the market was also highly tuned to supply disruptions as production problems at US refineries helped bring buyers back.
US light crude for September gained 7 cents to $74.34 a barrel early today. London September Brent crude traded up 18 cents to $73.90.
Prices had slid from last Friday, when they surged to a record-peak of $78.40 in New York on fears the conflict could spread, but they remain around 20 per cent up this year.
