UPDATE 8-Oil steadies as demand worries offset Iran's new nuclear threats

* Iran says it will enrich uranium at higher level
* 'Be careful,' Trump tells Tehran
* U.S. output gains to outpace demand growth until 2020
-Goldman

(New throughout, updates prices, market activity and comments
to settlement)
By Stephanie Kelly
NEW YORK, July 8 (Reuters) - Oil prices steadied on Monday
as tensions over Iran's nuclear program countered concerns about
whether slowing global economic growth would hit oil demand.
Brent crude LCOc1 futures fell 12 cents to settle at
$64.11 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1
futures rose 15 cents to settle at $57.66 a barrel.
Oil prices edged higher for much of the session, then eased
ahead of settlement.
"Worries about what is going on in the Persian Gulf continue
to put a bit of a bid into the market, but without any new
significant developments the market dropped back toward
unchanged," Gene McGillian, vice president of market research at
Tradition Energy in Stamford, Connecticut. "Worries about demand
growth are holding the market back."
Iran on Monday threatened to restart deactivated centrifuges
and step up its enrichment of uranium to 20% in a move that
further threatens the 2015 nuclear agreement that Washington
abandoned last year. Washington has imposed sanctions that eliminate benefits
Iran was meant to receive in return for agreeing to curbs on its
nuclear program under the 2015 deal with world powers. The
confrontation has brought the United States and Iran close to
conflict.
On Sunday, Trump issued another warning over Iran's nuclear
activities. "They'd better be careful," he said.
Iran's Oil Minister Bijan Zanganeh said on Sunday that he
was very hopeful of an improvement in the country's crude
exports, state TV reported. "We see enough possibility of military conflict to cushion
renewed price declines that might be driven by mounting
expectations for a major slowing in the global economic growth
path," Jim Ritterbusch of Ritterbusch and Associates said in a
note.
Oil prices remain under pressure from lingering worries
about demand as the U.S.-China trade war has dampened prospects
for global economic growth.
Japan's core machinery orders fell for the first time in
four months in May, the biggest monthly drop in eight months in
a worrying sign that global trade tensions are taking a toll on
corporate investment. Goldman Sachs said growth in U.S. shale production is likely
to outpace that of global demand at least through 2020 and limit
gains in oil prices despite output curbs led by the Organization
of the Petroleum Exporting Countries. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
GRAPHIC-U.S. rig count https://tmsnrt.rs/2X8Myf7
TECHNICALS-U.S. oil may bounce into $58.16-$58.66/bbl range
L4N2490PU
TECHNICALS-Brent oil may extend gains into $64.89-$65.10/bbl
range L4N2490LW
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