UPDATE 7-Oil steadies as U.S. crude stocks draw but fuel inventories rise

* U.S. crude stocks dip as refineries boost output -EIA
* Top waterways won't be as safe if oil exports cut to zero
-Iran
* U.S. central bank seminar may bring monetary stimulus

(Updates prices, market activity)
By Stephanie Kelly
NEW YORK, Aug 21 (Reuters) - Oil futures steadied on
Wednesday after U.S. government data showed a drawdown in
domestic crude stocks but rises in refined product inventories,
while lingering worries about the global economy weighed on the
market.
Brent crude LCOc1 rose 35 cents to $60.38 a barrel by
12:44 p.m. EDT (1644 GMT), down from a session high of $61.41.
U.S. West Texas Intermediate (WTI) crude CLc1 fell 32
cents to $55.81 a barrel, after hitting $57.13 a barrel.
Prices pared gains after data from the Energy Information
Administration showed bigger-than-expected builds in U.S. fuel
inventories last week. Gasoline stocks USOILG=ECI rose by
312,000 barrels, while distillate supplies USOILD=ECI grew by
2.6 million barrels.
Crude stockpiles USOILC=ECI decreased 2.7 million barrels,
a bigger drawdown than the 1.9 million barrels that analysts had
forecast.
"It looks like gasoline demand has peaked for the season,
and will only trend lower from here," said John Kilduff, partner
at energy hedge fund Again Capital Management in New York.
Tensions between the United States and Iran remained in
focus. Iranian President Hassan Rouhani said that if Iran's oil
exports are cut to zero, international waterways would not have
the same security as before, cautioning Washington against
tightening pressure on Tehran. The comment coincided with a remark by Iranian Foreign
Minister Mohammad Javad Zarif that Tehran might act
"unpredictably" in response to U.S. policies under President
Donald Trump. Uncertainty over the global economic outlook amid the
U.S.-China trade war capped gains in the oil markets.
"Crude oil remains stuck, with the relief rally in recent
days not removing the fear that recession risks could still send
the market lower again," said Ole Hansen, head of commodity
strategy at Saxo Bank.
Traders were also watching this week's annual U.S. central
bank seminar in Jackson Hole, Wyoming, where comments from
Federal Reserve Chief Jerome Powell will be in focus.
MKTS/GLOB
"Market players continued to fret over recession fears and
sluggish oil demand forecasts," said Stephen Brennock of oil
broker PVM. "A reprieve, however, may be on the cards tomorrow
... expectations are running high that hints of impending
monetary stimulus will be plentiful."