--Iran concerns shift, now underpin crude prices --Spain, Greece economic worries persist --US oil inventory data delayed until Thursday By David Bird Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--Crude oil futures prices were modestly higher Tuesday, searching for direction after a long holiday weekend and seven-month lows last week. Slim gains spilled over from strong equities prices, while the market watches conflicting signals from Iran and worries about economic stability in Europe. Light, sweet crude oil for July delivery on the New York Mercantile Exchange was 59 cents higher, at $91.45 a barrel. Prices hit a high of $91.99 a barrel in electronic trading since Friday's settlement. That was the highest front-month price since the June contract expired a week ago. July ICE Brent crude was 44 cents higher, at $107.55 a barrel. High hopes of a breakthrough in talks between major world powers and Iran over its nuclear program ended with an impasse last week. Hopes of an agreement helped push crude below $90 a barrel, at its lowest level since last October. New talks are scheduled next month in Russia, ahead of a European Union embargo on Iranian oil imports set to go into effect July 1. Markets also are looking ahead to next month's Greek elections to see whether a new government could patch together a deal to stabilize the nation's troubled economy. Concerns in Europe have shifted to Spain, where retail sales fell 9.8% year-on-year in April under the weight of a sharp austerity program. Spain's government Tuesday said it is on track to meet key budget deficit targets this year, but the country's central bank warned that the euro zone's fourth-largest economy may remain in contraction in the second quarter. "The potential for increasing geopolitical tension with Iran is being eyed, as we move closer to sanctions being implemented, while hopes of pro-austerity parties winning next month's election in Greece are all combining to keep crude from falling," said Matt Smith, analyst at Summit Energy. Oil traders are worried that a contagion effect throughout Europe would slice into global oil demand. Although the world oil market is "better supplied" than in other recent times, world oil-market conditions could swiftly change this summer as Iran sanctions bite into supply, potentially compelling the International Energy Agency to tap global emergency stockpiles, an IEA official said. David Fyfe, head of the agency's oil industry and markets division, said no such moves are currently underway. Iranian oil delivered to the market in April was 1 million barrels a day below the 2.5 million barrels a day average level for the whole of 2011, according to preliminary IEA data, as sanctions take hold, Fyfe said. But what happens in the next month or two will be crucial -- particularly if more data show that's a trend or reveal an even larger hit to Iranian supply after a European embargo of Iranian oil takes effect July 1, he said. Weekly U.S. oil inventory data from the Energy Information Administration will be released at 11 a.m. EDT Thursday, one day later than usual, because of the Memorial Day holiday celebrated Monday. June heating oil was 1.27 cent higher, at $2.8415 a gallon. June reformulated gasoline blendstock futures were 2.74 cents higher, at $2.9203 a gallon. Both contracts expire at Thursday's settlement. -By David Bird, Dow Jones Newswires; 212-416-2141; david.bird@dowjones.com

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