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LONDON, Aug 24 Reuters Benchmark Brent oil climbed above 100 a barrel on Wednesday after Saudi Arabia suggested this week that OPEC could consider cutting output in response to poor liquidity in the crude futures market and fears about a global economic downturn.

Brent for October settlement reached a threeweek high, trading up 1.30, or 1.3, at 101.52 a barrel by 0850 GMT. U.S. crude was up 1.18, or 1.3, at 94.92 a barrel.

Contracts for both crudes soared on Tuesday after Energy Minister Prince Abdulaziz bin Salman flagged the possibility of cutting production amid poor futures market liquidity and macroeconomic fears. 

OPEC sources later told Reuters any cuts by the Organization of the Petroleum Exporting Countries and its allies, known as OPEC, were likely to coincide with a return of Iranian the market should Tehran secure a nuclear deal with world powers.

A U.S. official said on Monday that Iran had dropped some of its main demands on resurrecting a deal. 

OPEC is already producing 2.9 million barrels per day less than its target, sources said, complicating any decision on cuts or how to calculate the baseline for an output reduction.

The oil price and supply outlook suggest that an OPEC cut is not currently warranted, PVM analyst…