RTRS:UPDATE 3-Oil above $105 after Iran talks end without deal
* Tighter U.S. monetary policy likely after strong jobs data
* No deal yet at Iran nuclear talks but "not far" - France
* China's implied oil demand up 0.3 percent in October
* Coming Up: U.S. Construction Spending at 1500 GMT
(Updates throughout, changes dateline, previous SINGAPORE)
By Christopher Johnson
LONDON, Nov 11 (Reuters) - Brent crude oil edged up towards
$106 a barrel on Monday after Iran and six world powers failed
to reach a deal on Tehran's nuclear programme, and after Chinese
data pointed to a rise in fuel demand in the world's biggest
energy consumer.
Sanctions against Iran have removed more than 1 million
barrels per day (bpd) of oil from world markets, and any rise in
Iranian supply could push oil prices lower, analysts say.
Marathon talks between the United States, Russia, China,
Britain, Germany, France and Iran ended in Geneva on Saturday
without agreement but negotiations will resume again on Nov. 20.
Brent was up 35 cents a barrel at $105.47 by 0855
GMT. The contract hit a four-month low on Friday and, despite
rising to close the session up $1.66 per barrel, Brent ended
with a fourth straight week of losses.
U.S. crude was 20 cents lower at $94.40 a barrel,
after closing up 40 cents on Friday.
Divisions emerged among the Western allies on the final day
of the Iranian nuclear talks as France hinted the proposal under
discussion did not sufficiently neutralise the threat of an
Iranian nuclear bomb.
But French Foreign Minister Laurent Fabius, speaking to
Europe 1 radio on Monday, held out hope of a deal with Iran
soon: "We are not far from an agreement."
U.S. lawmakers said on Sunday they aimed to tighten
sanctions on Iran to stop Washington giving away too much in a
deal with Tehran.
Oil found some support from Chinese data pointing to higher
fuel demand as the economy accelerates.
China's implied oil demand inched up 0.3 percent in October
from a year earlier, after dipping the previous month, the first
yearly decline in 17 months.
The improvement came as official data at the end of last
week suggested China's economy had steadied after a protracted
slowdown, with factory activity growing faster than expected and
a rebound in exports also stronger than the market had thought.
But a surprise increase in U.S. jobs data on Friday, which
strengthened the dollar as well as the possibility that U.S.
stimulus could be pared sooner, weighed on some commodities
including the domestic crude oil contract.
"Some investors expect a reduction in the Federal Reserve's
asset purchase programme sooner rather than later," said Carsten
Fritsch, senior oil and commodities analyst at Commerzbank.
News last week that Saudi Arabia cut its crude output in
October to 9.75 million bpd from 10.1 million bpd in September
also helped support prices.
In Libya, tensions remained high after an autonomy movement
in the east said on Sunday it had formed a regional oil firm to
start selling crude after seizing several ports.
Kuwait's oil minister, Mustapha al-Shamali, said on Saturday
he expected the Organization of the Petroleum Exporting
Countries to keep its crude oil output target unchanged at its
next meeting.
OPEC, which pumps more than a third of the world's oil, will
meet on Dec. 4 in Vienna to decide its output target.