Brent steady near $109 ahead of EU summit, Iran talks

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* World powers due for nuclear talks with Iran on Wednesday

* U.S. crude stocks up, products unchanged last week - poll

By Florence Tan

SINGAPORE, May 22 (Reuters) - Brent crude held steady near $109 on Tuesday, awaiting the results of two meetings to tackle Europe's debt crisis and Iran's nuclear programme and which are likely to determine the future of global oil demand and supply.

EU leaders may implement new measures to tackle its worsening debt crisis during a Wednesday meeting after contagion fears sparked a global markets selloff in the past few weeks.

World powers will also meet Iran on Wednesday to discuss its nuclear programme, but tensions with the West remain high as the U.S. Senate unanimously approved a package of new economic sanctions on Iran's oil sector on Monday.

Brent crude edged up 6 cents to $108.87 by 0320 GMT, but is still about $20 down from March's high. U.S. crude for June inched up 6 cents to $92.63 ahead of its expiry later today.

"Prices just got to such a depressed point where there could be some speculative or technical buying," Ben Le Brun, a Sydney-based markets analyst at OptionsXpress said.

"Uncertainty in the euro zone is going to weigh out anything from Iran, unless the Iranian news flow gets worse."

Francois Hollande will push a proposal to share the burden of European debt at an informal summit of EU leaders in Brussels this week, after talks about Greece's possible exit from the common currency zone raised jitters among investors.

Investors will have to wait until re-elections in Greece on June 17 for a clearer picture on whether the debt laden country will stay in the euro zone, Le Brun said.

"In times of uncertainty, traders prefer to take short positions and talk later," he added.

IRAN

Rising crude stocks in the United States and higher production from OPEC producers also capped oil gains although any signs of rising tensions between Iran and the West may lift prices again.

There was no immediate sign of a breakthrough in the tense confrontation over Iran's nuclear programme after U.N.

"Senate unanimously approved a package of new economic sanctions on Iran's oil sector on Monday.Brent crude edged up 6 cents to $108.87 by 0320 GMT, but is still about $20 down from March's high"nuclear watchdog chief held talks in Tehran on Monday.

Instead, the United States toughened its stance when the Senate unanimously approved on Monday a package of new economic sanctions on Iran's oil sector two days ahead of the meeting in Baghdad between major powers and Tehran.

"Short term, we feel there are risks to the upside," ANZ analysts said in a note, adding that Brent looks to be targeting $110.15 a barrel.

"If WTI can clear $93 a barrel, we may see another dollar move towards $94."

Rising crude stockpiles in the United States may also weigh on prices. Crude inventories were expected to rise 1.0 million barrels last week, up for the ninth straight week, a Reuters poll of analysts showed. Distillates and gasoline stocks were forecast unchanged from the previous week's level.

(Editing by Miral Fahmy)

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