* U.S. crude stocks seen rising 1.6 mln barrels last week * Secretary Kerry says hopeful of Iran deal within months * Stronger dollar weighs on prices * Chinese leaders to announce 10-year reform agenda (Updates prices) By Jacob Gronholt-Pedersen SINGAPORE, Nov 12 (Reuters) - Brent crude futures dropped towards $106 per barrel on Tuesday on expectations of a large increase in U.S. oil inventories, while investors eyed possible economic reforms to be announced by Chinese leaders later in the day. While unsuccessful talks between Iran and world powers at the weekend pulled Brent away from a four-month low hit last week, a strengthening dollar and an expected build in U.S. crude stockpiles weighed on prices. Brent contract for December delivery was 17 cents lower at $106.23 per barrel at 0736 GMT. U.S. crude was down 25 cents at $94.89 per barrel. U.S. crude oil stockpiles were seen rising by 1.6 million barrels last week, according to a preliminary poll of Reuters analysts, but expectations of higher refinery runs headed into the heating season helped limit a steeper fall in prices. "Looking at the economic statistics in the United States, demand should be increasing," said Yusuke Seta, commodity sales manager at Newedge in Tokyo. "We should see a drawdown in stocks in the coming weeks, as refiners increase runs ahead of the peak winter season." The U.S. oil inventory data reports this week will be delayed by a day due to the Veterans Day holiday on Monday. Industry group, the American Petroleum Institute, will release its report on Wednesday and the U.S. Energy Information Administration will publish its data on Thursday. A strengthening U.S. dollar also weighed on oil prices, as it held to the upward trend seen at the end of last week on expectations the Federal Reserve might scale back its stimulus sooner than thought following a strong U.S. jobs report. Following unsuccessful talks over the weekend, investors will also be watching for the next round of talks between Iran and world powers due on Nov. 20. U.S. Secretary of State John Kerry said he hoped an agreement would be signed within months, while London and Tehran revived diplomatic ties. "At least for now, the idea that Iranian oil will return to global market is off the table," said Chee Tat Tan, investment analyst at Phillip Futures in Singapore. In a sign it is willing to grant concessions, Iran said on Monday it will grant U.N. inspectors "managed access" to a uranium mine and a heavy-water plant. But concern is growing among U.S. lawmakers and a pro-Israel group that Washington may be giving away too much in negotiations with Tehran. "We still see big challenges in reaching a deal. The United States is under political pressure, and Iran doesn't seem to be giving too much," Tan said. CHINA REFORM Investors are also awaiting the unveiling of China's economic blueprint for the next decade later on Tuesday as Beijing seeks to balance the need to overhaul the world's second-largest economy while it tries to preserve stability and to reinforce the Communist Party's power. Economic reforms are likely to dominate when the country's leaders announce a 10-year agenda at the end of a Communist Party meeting on Tuesday, but some analysts say the chances of any big surprises will be small. While not likely to have a direct impact on oil prices, the announcement will show how committed China's new leadership is to reform of the world's second largest oil consumer after formally taking power in March. Some support came from continued trouble getting oil flowing out of Kazakhstan's giant Kashagan oilfield. Oil is unlikely to come online until spring as the world's biggest crude discovery in half a century faces equipment challenges including leaky pipes, industry sources said. (Editing by Tom Hogue and Prateek Chatterjee)

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