Concern over potential oil supply disruption eases
China 39;fully confident39; it will meet fullyear economic targets
US API inventory data due at 2030 GMT

LONDON, Oct 8 Reuters Oil prices declined on Tuesday with concerns over potential oil supply disruption easing as the market still awaits an Israeli response to the Iranian rocket attacks last week which triggered the crude price rally.

Brent crude futures fell 1.11, or 1.37, to 79.82 per barrel at around 0805 GMT. U.S. West Texas Intermediate futures fell 1.12, or 1.45, to 76.82 a barrel.

Panmure Liberum analyst Ashley Kelty said prices are set to remain volatile but profit taking could pressure the market in the absence of a material shift in activity in the Middle East.

Both contracts rose more than 3 on Monday to their highest levels since late August, adding to last week39;s rally of 8, the biggest weekly gain in over a year, on concerns that escalating hostilities could disrupt oil supplies from the Middle East.

The oil price rally began after Iran launched a missile barrage on Israel on Oct. 1. Israel has sworn to retaliate and is weighing its options, with Iran39;s oil facilities considered a possible target.

Oil can keep ascending only for so long purely based on perceptions and not actual supply disruption … although it would be irresponsible to claim that the dust has settled on Iran39;s direct and ominous involvement in the conflict, but for now the threats of Israeli assaults on Iranian oil…