CORRECTED-Oil steadies after global demand worries spark fall

(Corrects final paragraph to drawdown, not build)
TOKYO, July 25 (Reuters) - Oil ticked higher early on
Thursday after falling in the previous session as more signs of
slowing global growth added to demand concerns, with Middle East
tensions underpinning prices.
Brent crude LCOc1 futures were up 6 cents at $63.24 a
barrel by 0053 GMT, after dropping 1% overnight, falling for the
first time in four sessions.
U.S. West Texas Intermediate crude CLc1 were 12 cents, or
0.2%, higher at $55.99 a barrel, having dropped 1.6% in the
previous session.
Sentiment in the oil market has darkened as investors worry
that slowing global economic growth will weaken demand for oil.
A series of purchasing manager index readings in the United
States and Europe were weaker than expected, confirming concerns
about slower economic growth amid a trade war between the United
States and China. "Global growth concerns are driving energy prices lower as
forecasts keep getting downgraded even as the U.S. will be
sending a trade team to China next week," Alfonso Esparza,
senior market analyst at OANDA, said in a note.
Set against those worries are ongoing tensions in the Middle
East following the seizure of a British-flagged tanker in the
Gulf by Iranian forces last week.
The military adviser to Iran's supreme leader was quoted on
Wednesday as saying that any change in the status of the Strait
of Hormuz, which Tehran says it protects, would open the door to
a dangerous confrontation. "Concerns about Middle East tensions are keeping oil prices
supported as Iran has warned about the presence of naval ships
out of the Persian Gulf," Esparza said.
Britain, meanwhile, gained initial support from France,
Italy and Denmark for its plan for a European-led naval mission
to ensure safe shipping in the Gulf. Sweden said on Wednesday it was holding talks with Iran,
Britain and others over the seized tanker, which is Swedish
owned. The market shrugged off a bigger-than-forecast drawdown in
U.S. crude inventories, which fell nearly 11 million barrels
last week. EIA/S