* U.S. Kerry says speech by Iran leader "very disturbing"
* Dollar falls for first time in a week
* Impact on Brent from Iran crude may be milder - Barclays
(Updates prices)
By Amanda Cooper
LONDON, July 21 (Reuters) - Oil prices steadied on Tuesday,
helped by the dollar's first daily fall in a week, but remained
set for their biggest monthly drop since March in the face of a
global supply glut.
Expectations of more Iranian supply following a nuclear deal
and concerns that economic worries in China and Europe will
weigh on demand have put pressure on oil this month,
stripping 11 percent off the price of crude so far in July.
Brent crude edged off session lows, lifted by comments from
U.S. Secretary of State John Kerry, who said Iranian Supreme
Leader Ali Khamenei's vow at the weekend to defy American
policies in the region was "very disturbing". ID:nL5N1010WG
"The Kerry comments are worrying," said Tamas Varga, analyst
at London brokerage PVM Oil Associates.
"They suggest implementing the Iran nuclear deal may not be
as straightforward as it originally seemed, and maybe therefore
Iranian oil exports could reach the market more slowly than
expected."
Varga said he expected the next move for crude to be
downwards and saw the next target at $55.60 for Brent.
Brent September crude futures LCOc1 were 4 cents lower at
$56.61 a barrel by 1056 GMT, after settling down 45 cents on
Monday. Brent has fallen in 10 of the last 12 months, making
this its weakest period since 2008.
U.S. August crude CLc1 , set to expire on Tuesday, fell 5
cents to $50.10 a barrel. The front-month contract dropped below
$50 on Monday for the first time since April and is down some $9
a barrel for the month.
Last week, the International Energy Agency said it expected
global oil demand growth to slow next year to 1.2 million
barrels per day (bpd) from 1.4 million bpd this year - far less
than needed to balance stubbornly growing supply, including the
potential influx of Iranian crude.
Barclays' team of energy analysts said they believed the
impact of additional supply from Iran, which has some 40 million
barrels of oil in floating storage alone, might not be as severe
as some have feared.
Investor expectations for the first U.S. rate rise in almost
a decade this year have pushed the dollar .DXY up 5 percent
over the last four weeks, pressuring oil. FRX/
The dollar was down 0.1 percent on Tuesday, having fallen
for the first time in a week against a basket of currencies, but
held just shy of three-month highs.
A rising dollar makes it more profitable for non-U.S.
investors to sell dollar-denominated assets.