NYMEX-US crude up, Iran tensions support

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On Monday, U.S. President Barack Obama met Israeli Prime Minister Benjamin Netanyahu in Washington, hoping to convince Israel to give sanctions against Iran more time, but the Israeli prime minister offered no sign of backing away from possible military action, saying his country must be the "master of its fate."

The United Nations' International Atomic Energy Agency said Iran had tripled its monthly production of higher-grade enriched uranium and the IAEA chief added that the agency had "serious concerns" about possible military dimensions to Tehran's activities.

FUNDAMENTALS

* NYMEX crude for April delivery climbed 48 cents to $107.20 a barrel by 0046 GMT, after settling at $106.72 a barrel on Monday.

* London Brent crude for April delivery was not traded after settling at $123.80 a barrel on Monday.

* Chinese Premier Wen Jiabao cut China's 2012 growth target to an eight-year low of 7.5 percent, raising concerns about growth in demand for oil going forward.

* Ahead of weekly inventory reports, U.S. crude stocks were expected to have risen last week, a Reuters survey of analysts on Monday showed.

* An explosion hit an oil pipeline near the town of Quraiya in Syria's eastern province of Deir al-Zor on Monday as Syrian troops began a military operation in the region, opposition activists said. U.S. Senator John McCain on Monday urged the U.S. to lead an international effort to protect key population centers in Syria through air strikes on President Bashar al-Assad's forces.

* Iraq said its oil output has risen above 3 million bpd for the first time in more than three decades and that exports will increase with a major new floating oil terminal beginning operations this week.

* Speculators lifted their net long positions in Brent crude oil futures in the week to Feb. 28, Intercontinental Exchange data showed, mirroring an increase in net longs in the U.S. contract.

MARKETS NEWS

* Asian shares and growth-linked currencies were under pressure on Tuesday as slowing economies in China and Europe and tension over Iran dampened sentiment, prompting investors to take profits from recent rallies that had been driven by ample liquidity.

* The euro recovered from a two-week low as profit-taking in the dollar offset data highlighting the diverging paths of the U.S. and European economies. The Australian and New Zealand dollars, which are closely correlated with global growth, slumped after China announced its lowest annual growth target in eight years.

* Gold steadied on Tuesday after falling 1 percent in the previous session as China, viewed by many as the engine of the global economy, cut its economic growth targets, but cheaper prices were expected to attract more buying from jewellers in Asia.

DATA/EVENTS

* American Petroleum Institute oil inventory data due at 4:30 p.m. EST (2130 GMT) on Tuesday.

* U.S. Energy Information Administration oil inventory data due at 10:30 a.m. EST (1530 GMT) on Wednesday. (Reporting by Rebekah Kebede; Editing by)

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