UPDATE 6-Oil eases on good supply picture
* Major powers, Iran to resume nuclear talks this week
* Saudi Q3 crude exports surge to highest in nearly eight years
* Investors wait for Fed meeting minutes
(Recasts, adds analyst quote, updates prices, changes dateline, pvs LONDON)
NEW YORK, Nov 18 (Reuters) - U.S. oil fell in choppy trading on Monday, as the perception of ample supplies outweighed expectations for strong demand due to a continued easy money policy in the United States.
Investors also awaited news from a meeting beginning on Wednesday between Iran and world powers over ending its nuclear program that may provide insight on whether sanctions against Iran would be lifted and, if so, when.
Sanctions against Iran have kept around 1 million barrels per day (bpd) of oil from the global market and any deal could allow some of that oil to be sold, depressing a market that is already well supplied.
A weaker dollar and strong equity markets boosted by reform plans in China, including energy price reform, stemmed losses.
Oil is priced in dollars and a weaker greenback makes crude cheaper for holders of foreign currencies.
January Brent crude had fallen 17 cents to $108.33 a barrel at 12:13 p.m. EST (1713 GMT), after hitting a high of $108.73, six cents shy of the 50-day moving average.
U.S. crude for December delivery was 4 cents lower at $93.80, after hitting a high of $94.30. The market has been consolidating around $94-$95 a barrel, analysts said.
Range-bound trading has kept Brent's per-barrel premium to U.S. oil at $13-$14 for the last two sessions after rising U.S. supplies pushed it up to close to $16 last week.
The oil market was trying to rebalance as refineries come out of seasonal maintenance, which will increase oil demand, while it faces rising supplies.
Saudi crude production rose close to 10 million barrels per day, the highest average level sustained over a four-month period since government records began in 2002. In the U.S., production in North Dakota is nearing 1 million bpd.
The U.S. market is in flux as a major Midwest refinery in Indiana burning light, sweet crude moves toward burning heavy oil and as light sweet crude production in North Dakota competes with burgeoning Texas supply.
"The market is trying to figure out what's happening with the flow of oil," said Stephen Schork, editor of the Schork Report in Villanova, Pennsylvania. "You're seeing demand destruction in Indiana coupled with increased price competition, while demand is picking up."
Tensions in Libya helped keep a floor under oil prices. The country's deputy intelligence chief was kidnapped on Sunday, highlighting the country's internal strife which has sharply reduced its oil exports.
Libyan crude oil exports have fallen by more than 1 million bpd over the last six months as fighting between rival militias and industrial unrest has spread across the country. Analysts see little sign of an immediate end to the turmoil.
Investors awaited minutes of the U.S. Federal Reserve's October meeting for hints on when it might start paring its asset-buying program. Fed Chairman-nominee Janet Yellen signalled last week the central bank would need stronger evidence of economic growth before tapering.
Still, hedge fund positioning points toward lower prices. Fund managers cut their net long U.S. crude futures and options positions in the week to Nov. 12 for the second week in a row. Large investors in Brent crude cut their net long positions in Brent crude futures and options to their lowest for a year.
(Additional reporting by Joshua Franklin in London and Florence Tan in Singapore; editing by James Jukwey, Keiron Henderson and Alden Bentley)