SINGAPORE, July 22 Reuters Oil prices climbed in Asia trading on Friday, rebounding from previous declines amid supply tightness and geopolitical tensions, even though weakened demand in the United States has cast a shadow on the market this week.

Brent crude futures rose 1.61, or 1.6, to 105.47 a barrel by 0630 GMT, while U.S. West Texas Intermediate WTI crude futures gained 1.43, or 1.5, to 97.78 a barrel.

Things are still negative on the economic front, but we are still in a structural shortfall for prompt oil and that means physical buyers will be there to support dips knowing the uncertainty of what lies ahead on the geopolitical front, said Stephen Innes, managing partner at SPI Asset Management.

Innes said investors had next week39;s U.S. Federal Reserve decision on interest rates firmly on their minds. Fed officials have indicated that the central bank would likely raise rates by 75 basis points at its July 2627 meeting.

While 75 is in the cards, guidance will be important and any softening in the rate hike outlook would be great for global growth, Innes added.

While signs of softening U.S. demand weighed on oil prices and sent benchmark contracts sliding around 3 in the previous session, tight global supplies continued to keep the market buoyed.

Despite the sharp decline in oil prices, the outlook for the supply issue remains problematic. Until proven evidence for softened demands comes into sight, the Ukraine warintensified supply shortage will keep…