By Sarah Turner, MarketWatch
SYDNEY (MarketWatch) — Oil pulled back slightly Monday, although ongoing Middle East political tension helped limit price downside.
Benchmark oil futures (CLK11 105.03, -0.37, -0.35%) slipped 25 cents to $105.15 a barrel in the electronic trading session of the New York Mercantile Exchange.
In regular trading in New York on Friday, the contract finished the session down 20 cents at $105.40 a barrel but notched weekly gains of 4.2%.
“Crude-oil prices remain firm, with further indications of exceedingly strong demand and tenuous supply,” said Barclays Capital commodity strategists.
Middle East political turmoil continues to grip the oil markets.
Over the weekend, rebels opposing the regime of Col. Moammar Gadhafi reportedly gained some ground, taking advantage of international air strikes.
NATO has agreed to take control of international military operations concerning Libya, according to The Wall Street Journal, a move that means the U.S. can take more of a backseat.
U.S. President Barack Obama is slated to make a speech Monday to outline why the U.S. intervened in Libya, according to The Wall Street Journal.
