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SINGAPORE, Mar 10 (Reuters) Oil edged up on Friday, building on the previous day's gains after a recovery in U.S. gasoline prices and on nagging worries over supply disruptions in major producing countries.

U.S. light crude for April was up 18 cents at $60.65 a barrel by 0859 GMT, after rising 45 cents on Thursday. London Brent crude traded 19 cents higher at $61.25 a barrel.

Traders said technical and fund buying had kicked in to help the market recover from a three-day slide this week that took prices below $60.

''We see $60 as key -- we broke that but bounced back as anything under $60 is a good buy,'' said a dealer at a bank in New York.

''There are always geopolitical concerns.'' The market was given a boost by gasoline which gained 0.7 percent at $1.732 a gallon to add to Thursday's 4.2 percent climb, and by Iran's tough stance over its nuclear programme as well as further violence in Nigeria's oil delta.

Prices remain nearly 5 percent lower this week after U.S.

government data showing crude stocks in the world's top consumer rose to their highest level in nearly seven years last week, though gasoline inventories fell on lower refinery use.

''The current high levels of U.S. inventory is of little comfort given that it is the product of an unusually high level of seasonal maintenance,'' said Barclays Capital.

''Although crude stocks are rising, product stocks are falling and U.S. oil demand is growing strongly.'' The Organization of the Petroleum Exporting Countries, which pumps a third of the world's crude, gave supply reassurance this week when it agreed in Vienna on Wednesday that there will be no change to its 28 million barrel-per-day (bpd) production ceiling.

''OPEC production is falling in any case thanks to Nigerian losses, and the threat from Niger Delta militants to oil exports has the potential to get even more serious,'' Barclays added.

Nigerian militants killed four soldiers and a policeman in an aborted attempt to capture a fuel tanker in the southern delta, officials said on Thursday, the latest in a series of attacks that have cut exports from the OPEC member by a fifth.

This helped push down OPEC oil to be shipped in the next four weeks by 550,000 bpd to 24.75 million bpd, an oil shipping analyst said.

Production in Ecuador edged up on Thursday after soldiers seized oil installations to quash a workers' strike, but state firm Petroecuador said it could take at least two months to fully restore output from 110,000 bpd to its normal 200,000 bpd.

And traders are concerned that a deal between Iran and the West over its nuclear programme appears no closer, with Tehran vowing on Thursday it would not compromise in the dispute.

The U.S. said Iran would be a major threat to U.S. Middle East interests if it acquired atomic bombs, though Iran says its nuclear programme is for civilian use. Traders fear any sanctions could see Iran retaliate by cutting oil exports.

REUTERS SY KN1601

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