* Investors pick up trading after U.S. holiday Monday * Investor caution stoked by China, Europe economic worry * Coming up: API oil data delayed to Wednesday NEW YORK, July 5 (Reuters) - U.S. crude futures rose on Tuesday as traders in the United States returned from a long holiday weekend. "Oil in New York rebounded from early losses in moderate overnight volume as traders reassess their positions following the long holiday weekend," Addison Armstrong, analyst at Tradition Energy in Stamford, Connecticut, said in a research note. Both U.S. and Brent prices rebounded from earlier pressure from concerns about China's economy and ongoing worries about Europe's sovereign debt problems. FUNDAMENTALS * On the New York Mercantile Exchange, August crude CLQ1 rose $1.40, or 1.5 percent, to $96.34 a barrel by 9:03 a.m. EDT (1303 GMT), trading from $94.34 to $96.42. * Saudi Arabia has trimmed for August just 10 cents from the July price for Arab Light crude oil for its Asia customers, who buy more than half of Saudi crude exports, an industry source said. [ID:nWLB7327] * Barclays Capital said it raised its 2012 forecast for Brent crude oil LCOc1 by $10 to $115 per barrel, and raised its 2012 forecast for U.S. light sweet crude oil CLc1 by $4 to $110. Barclays said in a note to clients it left its Brent forecast for 2011 unchanged at $112 but cut its 2011 forecast for U.S. crude by $6 to $100. [ID:nL6E7I50DP] * China's local government debt may be 3.5 trillion yuan ($540 billion) larger than auditors estimated, potentially putting banks on the hook for deeper losses that could threaten their credit ratings, Moody's said. [ID:nL3E7I507Y] * Markit Eurozone Services Purchasing Managers' Index (PMI) fell to an 8-month low of 53.7 in June from 56.0 in May. * Qatar has set the retroactive official selling price for Qatar Marine crude for June at $108.45 a barrel, down $1.15 from May, the official Qatar News Agency said. [ID:nL3E7I51PO] * Brent crude futures LCoc1 will fall to $90 a barrel by September because of the stock release coordinated by the International Energy Agency (IEA) and an increase in Saudi Arabia's production, before bouncing for the longer-term, Citigroup said. [ID:nL6E7I50MH] * Montana Governor Brian Schweitzer on Monday said authorities will review safety of all oil and gas pipelines that cross waterways in the state and close those that did not meet standards. [ID:nNN1E7630S] * Venezuela's energy policy is not affected by health problems suffered by President Hugo Chavez, his oil minister said on Monday. [ID:nN1E7630WX] * India is trying to ensure uninterrupted supplies of crude from Iran, Indian oil minister S. Jaipal Reddy told reporters. Iran will not cut supplies to India despite warning refiners it could do so if months of unpaid bills are not settled soon, the Iranian Oil Ministry's news website SHANA said on Sunday. [ID:nPOM324904] [ID:nDEB000195] * The IEA said on Monday it hoped a very sizable portion of its oil stock release will be taken up by the market and the move was already adding to supplies of light, sweet crude. [ID:nL6E7I41RJ] MARKETS NEWS * The euro retreated against the dollar and the Swiss franc as soft euro zone data and concerns over the health of the Chinese economy pushed investors away from riskier currencies back towards those perceived to offer safety. * World stocks steadied below a recent 4-1/2 month high while the euro fell on weak euro zone service sector report, caution about further monetary tightening in China. [MKTS/GLOB] * Gold traded back over $1,500 an ounce, shrugging off the stronger dollar versus euro as lingering uncertainty over a Greek debt rollover promoted risk-averse strategies. [GOL/] UPCOMING DATA/EVENTS * U.S. May factory orders to be released at 10:00 a.m. EDT (1400 GMT) on Tuesday are forecast to rise 1.0 percent after a 1.2 percent decline in April. * American Petroleum Institute oil inventory data due at 4:30 p.m. EDT (2030 GMT) on Wednesday, delayed a day due Monday's Independence Day holiday in the United States. 9:03 LAST NET PCT LOW HIGH CURRENT DAY AGO CHNG CHNG VOL VOL CLc1 96.34 1.40 1.5% 94.34 96.42 65,156 276,580 CLc2 96.88 1.37 1.4% 94.91 96.95 10,832 73,337 LCOc1 113.07 1.68 1.5% 110.45 113.29 71,815 44,885 RBc1 2.9738 0.0012 0.0% 2.9450 2.9882 7,654 10,067 RBc2 2.9295 0.0032 0.1% 2.8971 2.9431 4,010 52,851 HOc1 2.9550 0.0305 1.0% 2.8950 2.9614 4,598 10,601 HOc2 2.9715 0.0318 1.1% 2.9127 2.9762 832 54,573 * NYMEX crude oil for August CLc1 rose $1.40 to $96.34 a barrel by 9:03 a.m. in volume of 65,156 lots. (Reporting by Robert Gibbons; Editing by John Picinich)

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