* Chinese stocks fall 8 pct on Monday on growth worries
* Brent falls to near four-month low of $54.25 a barrel
* U.S. oil rig additions rise most since April 2014
(Updates throughout, changes dateline, previous SINGAPORE)
By Karolin Schaps
LONDON, July 27 (Reuters) - Oil prices fell to near
four-month lows on Monday after a steep drop in Chinese stock
markets and on more evidence of a global oil supply glut that
has halved prices over the past year.
Chinese stocks tumbled more than 8 percent on Monday, the
biggest one-day drop in eight years, amid renewed fears about
the outlook for the world's second-largest economy.
ID:nL3N1072VY
"Today's oil price fall has been driven by the slump in
Chinese stock markets," said Carsten Fritsch, senior oil market
analyst at Commerzbank (XETRA:CBKG) in Frankfurt.
Brent crude for September LCOc1 touched an intra-day low
of $54.25 a barrel, down 37 cents and its lowest since April 2.
Brent was down 15 cents at $54.47 by 0858 GMT. On Friday, Brent
closed at $54.62, its lowest since March 19.
U.S. crude for September CLc1 was down 26 cents at $47.88
a barrel.
China is the world's biggest energy consumer and a huge oil
importer. Investors worry that a stock market crash could
destabilise the Chinese economy and cut fuel demand.
Global oil supplies are ample with major oil producers in
the Middle East Gulf competing for market share and pumping 2-3
percent more oil than needed, analysts say.
Weekly U.S. drilling rig data showed on Friday that 21 oil
rigs had been added, the highest gain since April 2014, pointing
to a further increase in U.S. oil output. ID:nL1N1041JT
In Iraq, exports from its southern oilfields are on course
for a monthly record, having topped 3 million barrels per day so
far this month. ID:nL5N10420C
"In the next couple of months, even if the global oversupply
and seasonal weakness are becoming priced in, it is difficult to
see where any price uplift will come from," said Societe
Generale oil analyst Michael Wittner.
Investors were also looking to the U.S. Federal Reserve for
direction this week. The central bank starts a two-day policy
meeting on Tuesday that could result in a September interest
rate hike that would strengthen the greenback.
"There is scope for the dollar bulls to be disappointed this
week (which) might be a driver for oil prices and the
commodities complex overall," said Ben Le Brun, market analyst
at Sydney's OptionsXpress.
A weaker dollar makes dollar-denominated commodities,
including oil, cheaper for consumers using other currencies.