UPDATE 7-Oil prices strengthen more than 1% on Iran risk

* Gulf supply disruptions feared after ship's capture
* Force majeure lifted on exports from Libyan oil field
* Goldman cuts 2019 demand outlook
* GRAPHIC: Iran seizes UK-flagged tanker https://tmsnrt.rs/2O646ZX

(Updates with settlement prices)
By Jessica Resnick-Ault
NEW YORK, July 22 (Reuters) - Oil prices rose more than 1%
on Monday, as investors worried about possible supply
disruptions in the energy-rich Middle East after Iran's seizure
of a British tanker last week.
Brent crude LCOc1 futures climbed 79 cents, or 1.3%, to
settle at $63.26 a barrel.
West Texas Intermediate (WTI) crude CLc1 settled up 59
cents, or 1.1%, at $56.22 a barrel.
Capping gains, force majeure was lifted on loadings of crude
at Libya's Sharara oilfield, the country's largest, whose
closure since Friday had caused an output loss of about 290,000
barrels per day (bpd). Last week, WTI fell over 7% and Brent lost more than 6%,
weighed down by economic worries and the return of U.S.
production in the Gulf of Mexico after a hurricane.
"Some of the selling pressure from demand concerns seems to
have evaporated this week," said Gene McGillian, vice president
of market research at Tradition Energy in Stamford, Connecticut.
"The fears about geopolitics seem to have halted some of that
selling pressure."
Iran's Revolutionary Guards said on Friday they had captured
a British-flagged oil tanker in the Gulf in response to
Britain's seizure of an Iranian tanker earlier this month.
The move stoked fears of potential supply disruptions in the
Strait of Hormuz at the mouth of the Gulf, through which flows
about one-fifth of the world's oil supplies, but no major
escalation with Britain or the United States appears imminent.
"In the cat-and-mouse game that Iran is playing with the
U.S., it is taking calculated risks," Harry Tchilinguirian,
global oil strategist at BNP Paribas in London, told the Reuters
Global Oil Forum. "So far the U.S. is not taking the bait."
Last week, data showed shipments of crude from Saudi Arabia,
the world's top oil exporter, fell to a 1-1/2-year low in May.
Speculative money is flowing back into oil in response to
the escalating dispute between Iran, the United States and other
Western nations, along with signs of falling supply. In early
May, new, tighter U.S. sanctions on Iran took effect.
Hedge funds and other money managers raised their combined
futures and options positions on U.S. crude for a second week
and increased their positions in Brent crude as well, according
to data from the U.S. Commodity Futures Trading Commission and
the Intercontinental Exchange. Goldman Sachs on Sunday lowered its forecast of growth in
oil demand for 2019 to 1.275 million bpd, citing disappointing
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Iran seizes tanker https://tmsnrt.rs/2O646ZX
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