Oil steady; U.S.-China tensions weigh, possible output cuts support

NEW YORK (Reuters) - Oil futures steadied on Monday as rising U.S.-China tensions weighed on sentiment, but prices drew support from reports that OPEC and Russia were close to a deal extending output cuts.Brent futures rose 18 cents, or 0.5%, to $38.02 a barrel by 1:15 p.m. (1715 GMT). U.S. crude fell 39 cents, or 1.1%, to $35.10 a barrel.Investors turned cautious after China warned of retaliation on U.S. moves over Hong Kong.China has asked its state-owned firms to halt purchases of soybeans..