UPDATE 8-Oil falls to $80 as U.S. revises GDP down

                                
 * U.S. data dents hopes for strong recovery
                                
 * Euro recovers as leaders agree safety net for Greece
                                
 * South Korea navy ship news weighs
 (Recasts, updates prices, market activity)
                                
 By Joshua Schneyer and Rebekah Kebede
                                
 NEW YORK, March 26 (Reuters) - Oil prices fell below $80 a
barrel on Friday after data showed the U.S. economy grew less
than expected last quarter, and a plan to bail out Greece from
a fiscal crisis failed to quell concern over fragile economic
recovery.
                                
 "You had the GDP revised lower and there's still concern
about the euro and the euro zone economy," said Richard
Ilczyszyn, senior market strategist at Lind-Waldock in
Chicago.
                                
 The U.S. economy expanded at a 5.6 percent annual rate
instead of the 5.9 percent originally estimated, the Commerce
Department said in its final report for the fourth quarter,
albeit still at the fastest pace in nearly seven years.
[ID:nN26140498]
                                
 U.S. crude for May delivery <CLc1> settled at $80.00 per
barrel, down 53 cents, reversing gains earlier in the day.
                                
 ICE Brent <LCOc1> settled at $79.29, down 32 cents.
                                
 The euro rose from 10-month lows against the dollar after
euro zone leaders agreed on a safety net for Greece, but the
plan did not alleviate longer-term worries about fiscally
vulnerable economies in the region. [ID:nN26137383]
[ID:nLDE62P0J3]
                                
 U.S. consumer sentiment ended unchanged in March from
February, with high unemployment and tougher credit standards
hanging over the consumer, according to Thomson
Reuters/University of Michigan's Surveys of Consumers.
[ID:nN26147225]
                                
 News of the sinking of a South Korean navy ship also helped
drive down prices, analysts said.[ID:ID:nSGE62P0H6]
                                
 "There was also selling after news of the sinking of a
South Korean naval vessel, which was seen with bearish
implications on consumption and production," said Phil Flynn,
an analyst with PFGBest Research in Chicago.
                                
 SUPPLY HANGOVER
                                
 The U.S. economic data comes after a build up in crude
stocks in the country, reported earlier this week, put pressure
on oil prices. [EIA/S]
                                
 "This week's hangover from the ... supply inflows is now
acting as a background anchor on price action, despite the
overnight bounce in the euro," said Mike Guido at Macquarie.
                                
 A weaker dollar often leads crude prices higher, in part by
making oil priced in dollars cheaper for holders of other
currencies.
                                
 Carsten Fritsch at Commerzbank said financial investors
were stepping into the market around $80 as they bet on a rise
in demand led by Asia, supported by tentative signs of recovery
in the United States. [EIA/S]
                                
 Fritsch said the fundamental oil supply and demand picture
remains weak.
                                
 "There's still a risk of a large oversupply in the second
quarter leading to a further build in stocks," he said, given a
rise in U.S. crude oil inventories and signs that OPEC pumped
even more oil in the four weeks to April 10. [ID:nWLB0937]
                                
(Additional reporting by Jo Winterbottom in London and Gene
Ramos and Robert Gibbons in New York; Editing by David
Gregorio)