* Iran says can cut energy to Europe, hit enemies
* China manufacturing data shows growth moderating
* Chile's ENAP says boosts diesel imports after quake
(Releads, updates prices, adds China PMI data)
By Fayen Wong
PERTH, March 1 (Reuters) - Oil rose more than 1 percent and
topped $80 a barrel on Monday, amid threats by Iran that it
could cut off energy supplies to Europe, although prices later
eased on worries about slowing demand in China.
A senior military official from Iran, the world's
fourth-largest exporter of crude, said on Sunday the country
could make European countries suffer by cutting off energy
supplies and could target any adversary with its missiles.
[]
U.S. crude for April delivery <CLc1> rose 55 cents to
$80.21 by 0424 GMT, after having risen by as much as 95 cents.
The contract settled Friday up $1.49 at $79.66 and posted its
biggest monthly percentage gain since May 2009.
London Brent crude <LCOc1> rose 53 cents to $78.12.
"There's always a risk that tensions in the Middle East can
have a real impact on the supply of oil and oil's gains this
morning are largely a knee-jerk reaction to Iran's comments,"
said Toby Hassall, chief commodities analyst at CWA Global
Markets Pty Ltd.
"But the market needs to consider those comments in the
context of the underlying fundamentals, where there is now
spare capacity, so I think it's a bit early to be concerned
about supply disruptions."
Iran is locked in dispute with the United States and its
allies over its nuclear energy programme, which Western
countries fear is aimed at allowing Iran the chance to develop
nuclear weapons. Tehran says it is only interested in
electricity.
However, oil prices pared early gains after data showed the
pace of manufacturing in China, the world's second-largest fuel
consumer, slowed more sharply than expected last month. Output
and new orders continued to expand but the growth of export
orders fell, an official survey of Chinese purchasing managers
showed on Monday. []
Positive economic data on Friday from the United States,
which saw the world's largest economy grow faster than
initially thought at 5.9 percent versus 5.7 percent in the
fourth quarter, also helped increase investors' appetite for
more risky assets, lending further support to oil.
Separately, Chile's state energy company ENAP said it was
stepping up diesel imports after two of its oil refineries were
damaged by a powerful 8.8-magnittude earthquake on Saturday.
But analysts said the higher imports would have limited impact
on crude prices. []
Oil traders are set to take their cue from a raft of
economic reports due this week, with key focus on U.S. jobless
data, due on Friday, which will give more clues on consumer
spending. Other key economic indicators due include U.S.
manufacturing on Monday and U.S. home loans on Wednesday.
More news on Greece's debt problems could also fire up
investors, analysts said.
Greece may soon announce new steps to cut its budget
deficit, a government minister said on Sunday, amid signs that
Athens might be nearing a deal with European Union governments
to ease the Greek debt crisis. []
(Editing by Clarence Fernandez)
