Brent, WTI fall 1 before recouping losses to rise on Monday
OPEC output in June fell 100,000 bpd to 28.52 million bpd Rtrs survey
Global recession fears cap oil price gains analyst

KUALA LUMPUR, July 4 Reuters Oil prices reversed losses and edged up on Monday as concerns of tight supply amid lower OPEC output, unrest in Libya and sanctions on Russia outweighed fears of a global recession.

Brent crude futures for September rose 55 cents, or 0.5, to 112.18 a barrel at 0650 GMT, after falling over 1 in early trade.

U.S. West Texas Intermediate WTI crude futures for August delivery gained 44 cents, or 0.4, to 108.87 a barrel, after also falling 1 earlier.

Oil fundamentals remain supportive. Strong time spreads point to a tight market and clearly OPEC is still struggling to hit its agreed output levels, said Warren Patterson, head of commodity research at ING.

The group appears to be battling to maintain current output levels, with production falling over June.

Output from the 10 members of Organization of the Petroleum Exporting Countries OPEC in June fell 100,000 barrels per day bpd to 28.52 million bpd, off their pledged increase of about 275,000 bpd, a Reuters survey showed.

Declines in Nigeria and Libya offset increases by Saudi Arabia and other large producers, and Libya faces further supply disruption due to escalating political unrest, making the likelihood of OPEC meeting its newly increased production quotas even more unlikely, said ANZ Research…