Tokyo rubber inches up, supported by oil

TOKYO, May 12 (Reuters) - Tokyo rubber futures on Monday hovered slightly above Friday's close, supported by near record-high crude oil prices, although they fell short of the key 310-yen level.

* The benchmark Tokyo Commodity Exchange rubber contract for October delivery <0#JRU:> closed the morning at 309.4 yen, up 1.0 yen per kg or 0.3 percent, after moving between 306.6 yen and 309.6 yen.

* Traders have said they expect TOCOM rubber to consolidate at the 300-yen level, before moving higher and probably challenging this year's peak of 324.3 yen marked on Feb. 26.

* "There are few factors unique to rubber that are supporting TOCOM rubber, it is mostly riding higher on the strength of other commodities such as crude oil," a Tokyo-based broker said.

* Oil hovered close to record levels above $126 a barrel as violence in the Middle East heightened worries of supply disruptions in the world's largest crude-producing region.

* U.S. light crude for June delivery CLc1 was at $125.58 after it closed $2.27 higher at $125.96 on Friday. It rose to a record $126.27 in late post-settlement trade on Friday.

* Higher crude oil prices are often a positive factor for rubber as investors believe they will encourage a shift to natural rubber from synthetic rubber, a petroleum product.

* The dollar stood around 103.40 yen <JPY=>, compared with late U.S. levels of around 102.83 yen on Friday.

* Physical rubber supplies are tight due to rain in some of the producing areas, which has disrupted tapping.