Brent steady under $119; supply worries, China data aid

Brent held steady under $119 a barrel on Monday, as supply worries stemming from tightening Western sanctions on Iran and stabilising factory activity in China countered lingering concerns over the euro zone debt crisis.

Iran's crude exports have slipped to 2.1 million bpd, compared with an average of 2.3 million bpd in the last Iranian year that ended on March 19, Iranian oil officials said according to a report published on Friday.

Brent crude rose 4 cents to $118.80 a barrel by 0414 GMT, while U.S. crude was 15 cents lower at $103.73.

Tightening sanctions on Iran over the Islamic Republic's disputed nuclear programme helped send Brent prices above $128 a barrel in March, the highest since 2008.

The European Union is also planning an embargo on Iranian oil imports from July 1. While a review is possible in the next two months, there is no economic reason now to change plans for the ban, a senior EU official said on Friday.

At a Group of 20 finance ministers' meeting in the United States last week, officials issued a communique which outlined an agreement between the group and emerging nations to closely watch oil prices and carry out "additional actions" as needed as well as welcome the commitments by producing countries to ensure adequate supply.

China's factories stabilised in April with output inching higher, although it was still not enough for a private sector survey to flag a return to an expansionary cycle.

China's annual rate of GDP growth slowed to 8.1% in the first three months of 2012, down from Q4 2011's 8.9%, below consensus forecasts but above the most bearish investor calls, leading many analysts to believe that the downswing in the world's second-biggest economy may have bottomed out.

The view that the risk of a hard economic landing for China, the world's second largest oil consumer, has now largely passed is expected to support crude prices, but concerns that the euro zone debt crisis would dent demand may keep a lid on gains.