Oil down as US gasoline stockpiles seen rising

SINGAPORE, June 12 (Reuters) Oil prices dipped but held above $69 on Tuesday, as an expected rise in gasoline stockpiles in the United States weighed against OPEC supply curbs and worries over Iran's nuclear dispute.

London Brent crude currently seen as more representative of the global market, was down 15 cents at $69.41 a barrel at 0333 GMT, after rising 87 cents on Monday. U.S. crude fell 15 cents to $65.82 after a $1.21 rally.

U.S. gasoline inventories were seen rising another 1.9 million barrels last week on higher refinery runs and heavy imports, offsetting concerns about summer fuel supplies in the world's top consumer.

The U.S. Senate will begin debating legislation this week to reduce gasoline demand by increasing auto fuel economy standards.

Sentiment on crude supply remained supportive after top oil exporter Saudi Arabia told Asian and European customers supplies would continue at reduced levels in July, after some analysts predicted OPEC would begin easing output restrictions to take advantage of prices near $70.

''I think the main issue is if there is enough crude around -- at this time of year I believe in the U.S. that there is,'' said Tobin Gorey, commodities strategist at the Commonwealth Bank of Australia.

''The Saudi statement gave the market an excuse to rebound -- supplies will be much tighter at the end of the year.'' U.S. crude stocks are expected to have fallen 900,000 barrels last week, the Reuters poll showed The Organization of the Petroleum Exporting Countries has agreed since late last year to cut a total 1.7 million barrels per day (bpd) of output, roughly 6 percent of supplies. The reduction, combined with low U.S. gasoline stocks, helped lift oil from around $50 a barrel in January.

The sharp gains on Monday came alongside a broad rebound in other commodities markets after uncertainty over interest rates and a strengthening U.S. dollar led investors to liquidate assets late last week.

The International Energy Agency's (IEA) monthly report on Tuesday on the state of the global oil market will provide further direction.

Worries over Iran's nuclear dispute with the United Nations remain at the fore after the U.N's nuclear watchdog said on Monday that Tehran's nuclear behaviour poses a serious concern it might gain the ability to build atomic bombs.

REUTERS PYB RS1128