UPDATE 9-U.S. oil prices up as flooding hits Cushing hub

* Trade war could hurt economic growth and dent oil demand
* OPEC could continue production cuts that began at of year
* U.S. sanctions on Iran, Venezuela help to tighten supplies

(Updates prices)
By Collin Eaton
HOUSTON, May 28 (Reuters) - U.S. crude futures gained almost
1% on Tuesday after flooding throughout the Midwest constrained
crude flow from the main U.S. storage hub in Cushing, Oklahoma.
U.S. West Texas Intermediate (WTI) futures CLc1 settled at
$59.14 a barrel, up 51 cents, or 0.9%, from its close on Friday
before the long Memorial Day holiday weekend.
"Flooding seems to have impacted distribution hubs around
the United States, slowing stuff coming out of Cushing and
creating a bid on WTI," said Phillip Streible, senior market
strategist at RJO Futures in Chicago.
Flooded areas of Arkansas and Oklahoma were bracing for more
rain that will feed the already swollen Arkansas River,
forecasters said on Tuesday. Up to 19 inches (48 cm) of rain
have fallen so far in parts of Oklahoma over the month of May,
the National Weather Service said, with more on the way.
Meanwhile, Brent crude LCOc1 futures settled flat at
$70.11 a barrel, after repeatedly veering above and below the
$70-mark.
Prices had been caught between fears of slowed economic
growth and expectations that the Organization of the Petroleum
Exporting Countries (OPEC) and its allies will extend their
six-month deal to curb production.
OPEC and its allies including Russia, known as OPEC+, are
due to meet over June 25-26 to discuss output policy, but it
remains unclear whether their production pact will be extended.
"Saudi Arabia seems to be in favor" of extending production
cuts as U.S. output rises, said Gene McGillian, vice president
of market research at Tradition Energy.
"The market would have to adjust downwardly to adjust for
the barrels" if OPEC ended its cut of 1.2 million barrels per
day (bpd).
Brent futures last week registered a decline of 4.5% and WTI
slid by 6.4% for its biggest weekly loss since December.
Last week's oil-price drop came after the government
reported U.S. crude oil inventories have risen to 476.8 million
barrels, their highest since July 2017. Weekly inventory data
this week has been delayed a day due to Monday's Memorial Day
holiday.
However, globally supplies have tightened because of the
OPEC+ cuts so far this year, with political tensions in the
Middle East adding to the upward pressure on prices. U.S.
sanctions have also largely taken Iranian and Venezuelan crude
out of global markets.
"There's a geopolitical premium that's helping to support
prices," said John Kilduff, an analyst at Again Capital LLC.
Investors remained concerned the escalating U.S.-China trade
war could hit the global economy and dent fuel consumption.
"The U.S.-China trade war isn't getting any better and it's
really starting to weigh on growth," said Bill Baruch, president
of Blue Line Futures in Chicago. "Demand for crude could fall."