SINGAPORE (Reuters) - Oil rose above $67 on Wednesday, recouping day-ago losses as the U.S. dollar eased against the euro and resource currencies like the Australian dollar, while eyes are on talks over Iran's nuclear plans. Prices fell on Tuesday due to builds in U.S. crude and distillates stocks, a downgrade to energy demand and low consumer confidence data, which continued a string of bearish signals that has put crude on course for its first quarterly fall this year. Some bullish news emerged, with U.S. house prices rising for a third month, while a Chinese purchasing managers' index for September released on Wednesday showed strong growth continues in the world's second-largest oil consumer. And on Thursday, diplomats from the five permanent U.N. Security Council members and Germany will meet Iran's nuclear negotiator, the first talks on Tehran's disputed atomic programme in more than a year, as the White House weighed sanctions targeting the Islamic republic's reliance on gasoline imports and insurance firms that underwrite the trade. U.S. crude futures rose 45 cents to $67.16 a barrel by 0638 GMT (2:38 a.m. EDT), after shedding 13 cents on Tuesday. London Brent crude gained 41 cents to $65.90 a barrel. The markets are quiet ahead of China's week-long holidays.

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