*

Israeli strike on Hamas leadership in Qatar supports

prices

*

Trump asks EU to put tariffs on China, India to pressure

Russia

*

Longer-term outlook still for oversupply as OPEC+ ups

production

(Changes dateline to London, updates prices at 0835 GMT, adds

U.S. stockpile data, analyst comment)

By Shadia Nasralla

LONDON, Sept 10 (Reuters) - Oil prices rose on Wednesday

after Israel attacked Hamas leadership in Qatar, Poland shot

down drones and the U.S. made a push for new sanctions on

buyers of Russian oil, but concerns over crude oversupply capped

further gains.

Brent crude futures were up 56 cents, or 0.8%, at

$66.95 a barrel, as of 0835 GMT, and U.S. West Texas

Intermediate crude futures gained 56 cents, or 0.9%, to

$63.19 a barrel.

Prices had settled up 0.6% in the previous trading session

after Israel said it had attacked Hamas leadership in Doha.

Both benchmarks rose nearly 2% shortly after the attack, but

then retraced much of their gains.

Elsewhere, geopolitical tensions also rose when Poland shot

down drones during a widespread Russian attack in western

Ukraine on Wednesday, marking the first time a NATO member fired

shots in the war. However, there was no immediate threat of a

supply disruption.

"The dark cloud of surplus ahead is ... hanging over the

market with Brent trading two dollar lower than last Tuesday.

Geopolitical risk premiums in oil rarely last long unless actual

supply disruption kicks in," SEB analysts said.

Meanwhile, U.S. President Donald Trump has urged the

European Union to impose 100% tariffs on China and India as a

strategy to pressure Russian President Vladimir Putin, according

to sources.

China and India are major buyers of Russian oil, which has

helped to support Russia's coffers since it launched its

invasion of Ukraine in 2022.

"Uncertainty remains over how far the administration will

go, as aggressive action could conflict with efforts to manage

inflation and influence the Federal Reserve to reduce interest

rates," LSEG analysts said.

Traders expect the Federal Reserve to cut interest rates at

its September 16-17 meeting, which would boost economic activity

and demand for oil.

But the supply outlook remains bearish. The U.S. Energy

Information Administration cautioned global crude prices will be

under significant pressure in the coming months because of

rising inventories as OPEC+ increases output.

U.S. crude, gasoline and distillate stocks rose last week,

market sources said, citing American Petroleum Institute figures

on Tuesday. Government data is due at 1430 GMT.