Oil prices were slightly higher today bouncing off multi month lows hit in the previous session. Investors are turning their attention to supply tightness and financial markets recovering from yesterdays slump. Iran’s vow of retaliation against Israel and the U.S. following the killing of two militant leaders has raised concerns that a wider war is brewing in the Middle East, which could have a direct impact on supplies from the region. “Oil fundamentals are still suggesting an undersupplied oil market, with oil inventories still falling,” UBS analyst Giovanni Staunovo said. Gasoline demand in the U.S. was likely at over 9 million barrels per day last week, feeding confidence in the economy, Staunovo said. Global oil inventories decreased by around 400,000 bpd in the first half this year, according to U.S. Energy Information Administration (EIA) estimates published on Tuesday. It expects stockpiles to decline by around 800,000 bpd in the second half of the year. WTI traded up $0.26 to close 0.4% to close at $73.20. Brent traded up $0.18 or 0.2% to close at $76.48.