UPDATE 8-Oil steadies as U.S.-Iran optimism faces U.S.-China trade deal hopes

* Stage being set for Iran-U.S. summit to find deal - Macron
* Trump comments may signal easing of trade row
* Chinese top negotiator hopes for 'calm' negotiations

(Updates prices, adds Macron comments; changes byline,
dateline, previous LONDON)
By Stephanie Kelly
NEW YORK, Aug 26 (Reuters) - Oil prices steadied on Monday
after France's president lifted hopes for a deal between the
United States and Iran, while optimism for easing U.S.-China
trade tensions supported prices.
Brent crude LCOc1 fell 13 cents to $59.21 a barrel by
11:35 a.m. EDT (1535 GMT), after earlier hitting a session high
of $60.17.
U.S. West Texas Intermediate (WTI) crude CLc1 futures rose
16 cents to $54.33 a barrel, after reaching $55.26 a barrel.
Prices fell after French President Emmanuel Macron said
preparations were underway for a meeting between Iranian
President Hassan Rouhani and U.S. President Donald Trump in the
coming weeks to find a solution to a nuclear standoff.

Trump last year abandoned Iran's 2015 nuclear deal with
world powers, arguing that he wanted a bigger deal that not only
limited Iran's atomic work, but also reined in its support for
proxies in Syria, Iraq, Yemen and Lebanon, and curbed its
ballistic missile program.
Trump also tightened sanctions on Iran in May to try to
choke off its oil exports.
"Now the market is pondering the possibility that we'll see
a flood or Iranian oil come onto the market if there's progress
made," said Phil Flynn, an analyst at Price Futures Group in
Chicago. "We have to be admittedly cautious because we've heard
of deals one minute only to be tweeted down the next minute."
Buoying prices, Trump said he believed China was seeking a
trade deal after he said Beijing contacted U.S. officials
overnight to say it wanted a return to talks. "Anything is possible. I can say we are having very
meaningful talks, much more meaningful I would say than any time
frankly," Trump said later on Monday.
Chinese Foreign Ministry spokesman Geng Shuang said he had
not heard about a phone call between the two sides.
China's top negotiator, Vice Premier Liu He, had earlier
said Beijing was willing to solve the impasse through "calm"
negotiations and opposed an escalation. Concerns for the global economy have increased as trade
tensions between Beijing and Washington mounted in recent days.
Oil prices have fallen about 20% from a 2019 high reached in
April in part because of worries that the U.S.-China trade
conflict is hurting the global economy and therefore could dent
demand for oil.
China's Commerce Ministry said last week it would impose
additional tariffs of 5% or 10% on a total of 5,078 products
originating from the United States, including crude oil,
agricultural products and small aircraft. In retaliation, Trump said he was ordering U.S. companies to
look at ways to close operations in China and make products in
the United States. SEB analyst Bjarne Schieldrop said the oil market was
worried about "the secondary global growth effects of an upwards
spiralling trade war between China and the U.S.."
"The second concern for the oil market is that ... China is
now ready to wrestle with the U.S. in the global space of oil.

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GRAPHIC: U.S. rig count https://tmsnrt.rs/2X8Myf7
CHART: Brent oil may retest support at $58.1 L3N25M0TB
CHART: U.S. oil may test support at $52.60 L3N25M0V4
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(Additional reporting Noah Browning in London and by Aaron
Sheldrick in Tokyo;
Editing by Marguerita Choy and Deepa Babington)