(Updates prices, changes comment, dateline from previous LONDON)
* Wall St cuts losses as Trump talks deregulation, infrastructure
* Trump-Xi meeting is top-of-mind for traders
By Rodrigo Campos
NEW YORK, April 4 (Reuters) - Oil prices rose on Tuesday after forecasts of lower U.S. inventories outweighed a pickup in output in Libya, and energy sector stocks helped keep Wall Street little changed.
Stocks edged higher and Treasury yields turned slightly positive as U.S. President Donald Trump said his administration is working on changes to bank regulations and his proposed infrastructure bill "may" top $1 trillion.
Political risks from a meeting between the U.S. and Chinese leaders, as well as the upcoming French presidential election, kept investors cautious. Earlier, Treasury yields touched their lowest since late February and were not far from their lowest since November.
On Wall Street, indexes turned positive as Trump laid out his plans, even if investors have grown weary of his administration's ability to deliver on campaign promises after his effort to reform healthcare stalled in Congress.
Trade was high on investors' minds ahead of a possibly contentious meeting between Trump and Chinese President Xi Jinping, which Trump expects "will be a very difficult one."
"Investors are having to go through a period of realism," said Jason Pride, director of investment strategy at Glenmede in Philadelphia.
"Much of what was proposed (by the Trump administration) was either not going to make it or be a watered down version or be greatly delayed," he said.
The Dow Jones Industrial Average rose 31.04 points, or 0.15 percent, to 20,681.25, the S&P 500 lost 0.91 points, or 0.04 percent, to 2,357.93 and the Nasdaq Composite dropped 1.72 points, or 0.03 percent, to 5,892.96.
The pan-European FTSEurofirst 300 index rose 0.22 percent and MSCI's gauge of stocks across the globe shed 0.03 percent.
Emerging market stocks lost 0.13 percent. MSCI's broadest index of Asia-Pacific shares outside Japan closed 0.38 percent lower, while Japan's Nikkei lost 0.91 percent.
Both Brent and WTI crude were at their highest in nearly a month. They hit four-month lows in late March but have recovered 8 percent since then on expectations OPEC and other producers would cut output under an agreement reached last year.
The American Petroleum Institute will report inventory data at 4:30 p.m. EDT (2030 GMT).
"OPEC compliance is still holding better than we expected with next week's release of various monthly agency reports likely to confirm," said in a note Jim Ritterbusch, president of Chicago-based energy advisory firm Ritterbusch & Associates.
U.S. crude rose 1.69 percent to $51.09 per barrel and Brent was last at $54.19, up 2.01 percent on the day.
The dollar edged up against a basket of major currencies but lost half a percent against the safe-haven Japanese yen. Gold, another safe haven asset, pared gains after hitting a one-week high.
The safe-haven yen rose to a one-week high against the dollar and a 4-1/2 month peak versus the euro with investor focus on the Trump-Xi meeting.
The dollar index rose 0.06 percent, with the euro down 0.06 percent to $1.0662.
The Japanese yen strengthened 0.14 percent versus the greenback at 110.76 per dollar, while Sterling was last trading at $1.243, down 0.45 percent on the day.
Benchmark 10-year notes last fell 2/32 in price to yield 2.3551 percent, from 2.35 percent late on Monday.
Spot gold added 0.3 percent to $1,256.05 an ounce. U.S. gold futures gained 0.33 percent to $1,258.10 an ounce.
Copper rose 0.45 percent to $5,779.00 a tonne.
Reporting by Rodrigo Campos, additional reporting by Scott DiSavino and Gertrude Chavez-Dreyfuss in New York and Yashaswini Swamynathan in Bangalore; Editing by Nick Zieminski