By Gurdeep Singh Crude-oil futures were trading sideways in Asia Monday as investors were cautious ahead of potentially market-moving remarks from the U.S. Federal Reserve Chairman Tuesday. On the New York Mercantile Exchange, light, sweet crude futures for delivery in August traded at $86.84 a barrel at 0650 GMT, down $0.26 in the Globex electronic session. August Brent crude on London's ICE Futures exchange rose $0.05 to $102.45 a barrel. Crude oil ended last week on a positive note, but gains have been capped because of a host of bearish economic cues globally, and analysts say prices may face more downward pressure unless there are signs that major economies are taking fresh steps to boost growth. "The downside case remains more compelling, unless [Federal Reserve Chairman Ben] Bernanke offers clear signals of fresh stimulus, and we are looking for the market to test back toward $84," analysts at ANZ Banking Group said a research note. Oil prices will likely lack direction ahead of Mr. Bernanke's testimony to Congress Tuesday, the analysts said. Investors also face concerns over slowing growth in China, the world's second-largest oil consumer after the U.S. Last week, China reported second-quarter economic growth in line with expectations, easing concerns about a sharper slowdown and raising hopes that Beijing may take steps to stimulate its economy. But over the weekend, Chinese Premier Wen Jiabao warned that the country's economic rebound is not yet stable and that economic hardship may continue for a period. Meanwhile, analysts say issues over supply of Iranian crude continue to provide support for oil prices. A waive of fresh U.S. sanctions that target Tehran's ability to transport its crude oil overseas has helped the fundamental outlook as excess supplies are taken off the market. Iranian crude-oil output has fallen to a 20-year low below 3 million barrels a day, analysts at Barclays Capital said in note to clients. "The start of European Union sanctions seems to have been accompanied by a fall in Iranian exports to 1 million barrels a day or below, less than half their 2012 average level," the analysts said. Nymex reformulated gasoline blendstock for August--the benchmark gasoline contract--rose 3 points to $2.8164 a gallon, while August heating oil traded at $2.7879, 3 points lower. ICE gasoil for August changed hands at $881.25 a metric ton, up $1.50 from Friday's settlement. Write to Gurdeep Singh at gurdeep.singh@dowjones.com

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