* Investors eye Federal Reserve's Oct 29-30 meeting
* Fed likely to stand pat on monetary policy
* Brent oil to rebound to $107.65 -technicals
TOKYO, Oct 28 Brent crude futures edged up to
above $107 a barrel in cautious early Asia trade on Monday,
taking a break after three days of losses as investors wait on
the U.S. Federal Reserve's policy meeting later this week.
Brent fell 2.7 percent last week, its biggest weekly decline
in a month, amid concerns about higher supply and faltering
demand, despite signs of faster economic growth in major
London Brent crude for December delivery was trading
27 cents higher at $107.20 a barrel by 0157 GMT, after settling
down 6 cents on Friday. U.S. crude for December delivery
was down 14 cents at $97.71 a barrel.
The U.S. Federal Reserve's two-day policy meeting from
Tuesday will be closely watched, but is unlikely to lead to any
shift in monetary policy as the bank waits for more evidence of
how badly Washington's budget battle has hurt the U.S. economy.
Analysts say the Fed could stand pat for the rest of the
year as economic data released since a partial government
shutdown ended has been surprisingly weak. Job growth slowed in
September, a period that preceded the government's 16-day
partial shutdown, and business investment plans flagged.
"It looks like we are getting farther and farther away from
the tapering of U.S. easing," said Ken Hasegawa, a commodity
sales manager at Newedge Japan.
"When there was a near consensus that the tapering should
begin from around November, the market easily made one-sided
bets, but now we don't know whether that happens by the end of
the year, so the market is hard to move in either direction in
Brent oil is expected to rebound to $107.65 per
barrel, as it has completed a five-wave cycle, according to
Reuters technical analyst Wang Tao.
The market will also keep an eye on talks between experts
from Iran and six world powers on Oct. 30-31 to prepare the next
round of high-level talks on the contested Iranian nuclear
programme with hopes of a breakthrough rising thanks to a
diplomatic opening from Tehran.
Western diplomats say the meeting, scheduled to take place a
week before the next round of negotiations in Geneva in
November, could be instrumental in defining the contours of any
preliminary agreement on Iran's uranium enrichment campaign.
Iran has not halted its most sensitive uranium enrichment
work, a senior Iranian parliamentarian said on Saturday,
contradicting a statement by another lawmaker last week.
Any halt of enrichment would be a big surprise, as Western
experts believe Iran would want to use such activity as a
bargaining chip to win relief from international sanctions.