Oil steady as OPEC+ mulls supply cut

LONDON, Aug 25 (Reuters): Oil prices steadied on Thursday as producer group OPEC+ raised the prospects of curbing oil supplies while the prospect of an agreement that could return sanctioned Iranian oil exports to the market weighed.

Brent crude eased 2 cents to $101.20 a barrel by 1033 GMT, while US West Texas Intermediate crude was down 22 cents, or 0.2 per cent, at $94.67 a barrel.

Comments on Monday by Saudi Energy Minister Prince Abdulaziz bin Salman about a disconnect between the futures and physical markets in which he flagged the possibility that OPEC+ could cut production have helped push oil prices to three-week highs.

"The suggestion that the price did not align with fundamentals and that OPEC+ could cut output has clearly had the desired effect," Oanda analyst Craig Erlam said. "It may also make the chance of a move back below $90 in the near-term hard to come by unless a nuclear deal is agreed upon and OPEC+'s appetite for cuts put to the test," he added.