Oil Steady at $86 on Dollar, Data

U.S. dollar touches seven-year high vs yen. China data shows orders, factory output fall.

Brent crude oil steadied around $86 a barrel on Monday as a stronger dollar balanced evidence of slightly lower oil production by OPEC ahead of a meeting of the producer group later in November.

The dollar powered to a seven-year peak against the yen and a two-year high against the euro on Monday, extending gains after the Bank of Japan's latest stimulus and punishing oil and gold priced in the U.S. currency.

Benchmark Brent crude oil has fallen by a quarter from a high above $115 a barrel in June as abundant supply has overwhelmed demand in most parts of the world, filling stocks.

Brent crude for December delivery was unchanged at $85.86 a barrel by 1305 GMT. The oil benchmark fell more than 9 percent in October, hitting its lowest in almost four years at $82.60 on Oct. 16.

U.S. crude was up 30 cents at $80.84 per barrel after losing more than 11 percent last month.

"The market is wary of pushing prices much further down," said Carsten Fritsch, senior oil and commodities analyst at Commerzbank in Frankfurt.

The Organization of the Petroleum Exporting Countries pumped 120,000 barrels per day (bpd) less crude oil in October, a Reuters survey showed on Friday, although overall supply stayed well above the cartel's output target of 30 million bpd.

Less oil from Nigeria and Angola brought total OPEC supply to an average of 30.72 million bpd in October, down from a revised 30.84 million bpd in September.

OPEC ministers meet in Vienna on Nov. 27 to decide on production targets for next year.

Most oil analysts expect no change in the group's output target, although French bank Societe Generale (SGE.SG) expects a cut.

"Though the (OPEC) meeting could be ugly, we believe they will ultimately succeed in agreeing on a shared output cut of 1.0-1.5 million bpd," said Michael Wittner, senior oil analyst at Societe Generale in New York.

Economic data was mixed for oil.

Growth in China's vast factory sector accelerated to a three-month high in October as smaller firms saw more orders, according to a private survey, although overall numbers pointed to a sluggish economy that is losing momentum.

The final HSBC/Markit Manufacturing Purchasing Managers' Index (PMI) for China edged up to 50.4 in October from September's 50.2.

While the headline number looked slightly better, growth rates slowed in several key areas heading into the fourth quarter, putting the Chinese government's full-year growth target of 7.5 percent further in doubt.

A survey by China's National Bureau of Statistics (NBS) on Saturday showed factory activity fell to a five-month low last month as firms struggled with slowing orders and rising borrowing costs.

By Christopher Johnson