Oil holds above $ 61 over Iran, tightening stocks

LONDON, Feb 27 (Reuters) Oil edged higher on Tuesday, in its sights, on forecasts for a drop in U.S. fuel stocks and the increasingly tense stand-off over Iran's nuclear ambitions.

U.S. crude has achieved a higher close for the past four sessions, and reached a 2007 peak of .75 a barrel at one point on Monday as commodities rallied across the board.

Barclays Capital technical analysts, who study past price moves to gauge future direction, said in a research note ''bullish signals were lining up''.

U.S. crude was up 14 cents at .53 a barrel by 0950 GMT. London Brent crude was up 15 cents at .48.

''A closing break above .20/50 a barrel is needed to confirm the bullish signs, targeting , possibly into next month,'' Barclays Capital technical team wrote.

Iran's refusal to halt uranium enrichment remains a driving factor. The world's fourth biggest oil exporter is at odds with the United Nations and at risk of tougher sanctions.

''There is an issue with Iran and it could be worth more than a few dollars,'' said Tobin Gorey, a commodity analyst with the Commonwealth Bank of Australia in Sydney.

At a meeting on Monday the five permanent members of the United Nations Security Council plus Germany agreed to work on a new Security Council resolution to put pressure on Iran.

A U.S. State Department spokesman said the six countries would hold phone talks on Thursday to start hammering out the elements of a resolution.

Renewed violence in Iraq and continued unrest in Nigeria also continue to threaten oil supplies.

A cold snap in the U.S. Midwest and Northeast, two key heating oil markets, has added support to prices at a time when refinery glitches and lower imports threaten to further drain gasoline stocks ahead of the summer driving season.

U.S. distillate inventories probably declined last week by 2.5 million barrels, their fifth consecutive fall, a poll of nine analysts by Reuters showed on Monday. The five-year average decline during the week is about 2.2 million barrels.

Gasoline stocks were projected to have fallen by an average 1.7 million barrels, with crude inventories expected to rise by 1.4 million barrels, according to the survey.

OPEC's existing oil output curbs -- pledged at 1.7 million barrels per day -- should bring the world market into balance, the group's new Secretary-General, Abdullah al-Badri, said on Monday, less than three weeks before the exporter group meets.

OPEC members including Nigeria, Algeria and Kuwait have said the group is likely to leave output unchanged next month. Badri said no members were suggesting further production cuts.

REUTERS CS PM1536