UPDATE 2-Oil steady as Middle East tensions mounts, set for weekly gains

(Adds chart, updates prices)
By Aaron Sheldrick
TOKYO, May 17 (Reuters) - Oil prices were steady on Friday,
giving up earlier gains, and were on track for the first weekly
increases this month, as rising tensions in the Middle East
stoked fears of supply disruptions.
Brent crude futures LCOc1 were at $72.61 a barrel at 0658
GMT, down 1 cent, from their last close, reversing earlier
increases. Brent was up 2.9% for the week, on track for its
first gain in three weeks.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were
at $63.95 per barrel, up 8 cents. WTI was headed for a weekly
gain of 2.1%, the first rise in four weeks.
A Saudi-led military coalition in Yemen carried out several
air strikes on the Houthi-held capital Sanaa on Thursday after
the Iranian-aligned movement claimed responsibility for drone
attacks on two Saudi oil pumping stations earlier in the week.
Earlier this week, staff were evacuated from the U.S.
embassy in Baghdad, while U.S. President Donald Trump ordered
the deployment of an aircraft carrier group, B-52 bombers and
Patriot missiles to the Middle East.
"When tensions are this high, with the U.S. deploying a
sizable military force, even a mistake or a tactical error by
Iran could ignite the Middle East powder keg," Stephen Innes,
head of trading and market strategy at SPI Asset Management told
Reuters by email.
"There are lots of supply risks with tensions this high," he
said, adding prices could test 2019 highs reached in April.
Still, Trump has told his top advisers he does not want to
get the United States involved in a war with Iran, three U.S.
officials said on Thursday. The market is also awaiting a decision from the Organization
of the Petroleum Exporting Countries (OPEC) and other producers
over whether to continue with supply cuts that have boosted
prices more than 30% so far this year.
A meeting of OPEC's ministerial monitoring committee in
Saudi Arabia this weekend will assess member states' commitment
to a deal reducing oil production, Iraq's oil minister said on
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OPEC Oil Production Capacity png https://tmsnrt.rs/2WJleV2
TECHNICALS-Brent oil may end bounce around $73.51-$73.80 range
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TECHNICALS-U.S. oil may rise further into $63.96-$64.90 range
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