OPEC has options to meet challenges, including cuts Saudi min
Iran has dropped some demands for nuclear deal U.S. official
Coming up API oil supply report, 2030 GMT

LONDON, Aug 23 Reuters Oil rose 1 a barrel on Tuesday as tight supply moved back into focus as a result of Saudi Arabia floating the idea of OPEC output cuts to support prices and the prospect of a drop in U.S. crude inventories.

The Saudi energy minister said OPEC had the means to deal with challenges including cutting production, state news agency SPA said on Monday, citing comments Abdulaziz bin Salman made to Bloomberg in an interview.

Global benchmark Brent crude gained 77 cents, or 0.8, to 97.25 a barrel by 0814 GMT. U.S. West Texas Intermediate crude rose 94 cents, or 1.0, to 91.30.

Whether cutting OPEC or OPEC output after September is justified is debatable, said Tamas Varga of oil broker PVM. Despite the recent inflationinduced weakness, the oil market seemed to have found a bottom lately.

Oil has soared in 2022, coming close in March to an alltime high of 147 after Russia39;s invasion of Ukraine exacerbated supply concerns. Concern about a global recession, rising inflation and weaker demand has since weighed on prices.

Also in focus is the prospect of a nuclear deal between Iran and world powers that would allow Iran to boost oil exports. A senior U.S. official told Reuters on Monday that Iran had dropped some of its main demands on resurrecting a deal. 

While the price of Brent…