(Reuters) - U.S. crude futures edged up on Friday as the euro rose against the dollar and equities markets pushed higher on cautious optimism that Italy will be able to enact measures to keep the region's debt crisis from spreading.
"Oil in New York rose in light overnight volume as the euro and global equities gained on cautious optimism over improved Italian and Greek bond spreads," Addison Armstrong, analyst at Tradition Energy in Stamford, Connecticut, said in a note.
Italy's parliament is rushing through austerity measures demanded by the European Union to avert a euro zone meltdown, after U.S. President Barack Obama ratcheted up pressure for more dramatic action from the currency bloc.
FUNDAMENTALS
* On the New York Mercantile Exchange, December crude rose 26 cents, or 0.3 percent, to $98.04 a barrel by 8:55 a.m. EST (1355 GMT), having traded from $97.35 to $98.53.
* Iran will ask OPEC, ahead of its December meeting, to return output levels to where they were before the Libya crisis earlier this year, Iran Oil Ministry's SHANA website reported.
* Iran's oil minister said sanctions that western powers are threatening to tighten on the Islamic Republic will not push up the global price of crude.
* Russia will cut exports of ultra-low sulfur diesel from the Baltic port of Primorsk in November to around 87,000 tonnes, or by 80 percent compared to a monthly average, traders and a source at the pipeline operator told Reuters.
* Greece is relying on Iran for most of its oil as traders pull the plug on supplies and banks refuse to provide financing for fear that Athens will default on its debt.
* At least 30 civilians and 26 soldiers were killed in Syria ahead of Friday prayers, activists said, as a seven-month crackdown on pro-democracy protests becomes more violent and attacks on security forces increase.
MARKETS NEWS
* European shares rose and the euro eked out modest gains as investors bought beaten-down riskier assets, with markets cautiously hopeful that debt-laden Italy will implement measures crucial to avoid a euro zone meltdown.
* U.S. stock index futures also rose on investor hope Italy will implement austerity measures and avoid a meltdown. .N
* Copper held steady, with signs of easing political tension in Italy prompting hopes the country will make progress in tackling its debt crisis, but worries about the impact of the European crisis on growth kept investors cautious.
* Gold edged lower in Europe as its safe haven appeal diminished amid hopes that new governments being formed in Italy and Greece will swiftly enact austerity measures in a bid to stave off the region's debt crisis.
UPCOMING DATA/EVENTS
* U.S. government offices, most U.S. banks, closed for Veterans Day holiday on Friday.
* Thomson Reuters/University of Michigan Surveys of Consumers release preliminary November consumer sentiment index, due at 9:55 a.m. EST (1455 GMT) on Friday. Economists in a Reuters survey expect a reading of 61.5 compared with 60.9 in the final October release.
* NYMEX crude oil for December rose 26 cents to $98.04 a barrel by 8:55 a.m. in volume of 45,533 lots.
