UPDATE 9-Oil lower on Iran deal; market eyes timing on exports
* Deal curbs Iran nuclear activity, calms oil supply fears
* U.S. gasoline prices drop
* Coming Up: API oil inventory data on Tues at 4:30 p.m. EST
(Adds details on gasoline prices, updates prices, changes dateline, pvs LONDON)
NEW YORK, Nov 25 (Reuters) - Oil fell on Monday following the breakthrough deal between world powers and Iran that led to expectations for an eventual increase in the OPEC nation's exports.
International benchmark Brent fell up to $3 a barrel in early trading following the weekend agreement, which halts Iran's most sensitive nuclear activity and suspends some sanctions by the United States and the European Union on several sectors of Iran's economy for an initial six-month period.
The early losses were pared on expectations an increase in oil shipments from Tehran would not be coming soon. Tough sanctions against Iran in the past two years have slashed exports from the OPEC member by more than half, keeping Brent above $100 a barrel.
"(The market is) realising, at least in the next few months, there's not going to be a substantial increase in oil exports," said Amrita Sen, chief analyst at consultants Energy Aspects.
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In the meantime, Iran is deploying more vessels to help store oil at sea and to enable it to conclude discreet sales by transferring cargoes to customers' ships in mid-ocean without having to enter port, trade sources familiar with the matter said.
Brent fell 64 cents at $110.41 at 12:07 p.m. EST (1707 GMT), after dropping to as low as $108.05 earlier in the session. U.S. oil traded down $1.01 to $93.83, after falling to a low of $93.08.
U.S. RBOB gasoline futures led the oil complex lower following news that Phillips 66's Bayway refinery in New Jersey had returned from maintenance on a gasoline unit. The front-month RBOB contract fell 1.3 percent to $2.6915 a gallon.
"You're going to start to see some greater than normal demand given that gasoline prices are cheap," said Stephen Schork, editor of the Schork Report in Villanova, Pennsylvania.
Investors are also watching for reports to gauge the health of the U.S. economy after reports that a consensus of economists trimmed their forecast for U.S. economic growth in the final quarter of the year.
U.S. Federal Reserve officials have indicated the agency is preparing to reduce the pace of bond buying in coming months as long as the economy continues to improve.
The U.S. pending home sales index for October fell 1.6 percent from October 2012.
(Additional reporting by Joshua Franklin in London and Sudip Kar-Gupta in London, Manash Goswami and Jacob Gronholt-Pedersen in Singapore; Editing by James Jukwey, Jane Baird and Bob Burgdorfer)