BANGKOK, Thailand (AP) -- Oil has steadied in Asia after falling back from a trading record near US$127 a barrel.

By midmorning Wednesday in Singapore, light, sweet crude for June delivery had dropped 11 cents from the overnight close to US$125.69 a barrel in electronic trade on the New York Mercantile Exchange.

Oil prices shot to a trading record of US$126.98 a barrel Tuesday on concerns that Iran may consider cutting crude oil production. Iranian officials denied in later news reports that production cuts were imminent but acknowledged a reduction has been discussed.

June crude futures finished the previous session at US$125.80 a barrel.