Aug 16 (Reuters) - Oil prices fell by more than $1 on

Friday, with Brent slipping below $80 a barrel after a string of

dismal indicators for July from China overshadowed geopolitical

risks.

Brent crude futures were down $1.07, or 1.32%, to

$79.97 per barrel by 0945 GMT, while U.S. West Texas

Intermediate crude futures fell $1.27, or 1.62%, to

$76.89.

"The oil market is struggling to retain its recently

recaptured $80/bbl floor as the recent string of weak

macroeconomic indicators reassert their downward pressure while

geopolitical concerns appear to fade into the background," said

Harry Tchilinguirian, head of research at Onyx Capital Group.

"The shape of the Brent futures curve is also changing this

morning in favour of less backwardation, as the market

reassesses the relative availability of crude in view of

disappointing crude import and refinery runs figures out of

China."

Backwardation occurs when spot prices are higher than future

prices, giving energy firms little incentive to pay to store

fuel.

In China, refineries sharply lowered crude processing rates

last month on tepid fuel demand.

The Organization of the Petroleum Exporting Countries (OPEC)

on Monday trimmed its demand outlook for this year, citing

softer expectations for China.

The real breakout from rangebound, and potentially firmer,

Brent crude prices will likely come when the U.S. Federal

Reserve makes a call on whether to cut interest rates or not at

its September meeting, independent oil analyst Gaurav Sharma

said.

Also keeping a lid on prices was Libya's Waha Oil Company

resuming flows to Es Sider port after finishing maintenance work

on a pipeline.

Providing a floor to prices was U.S. retail sales data on

Thursday which beat analysts' expectations, while separate data

showed fewer Americans had filed new applications for

unemployment benefits last week, sparking renewed optimism

around U.S. economic growth.

"Receding U.S. recession concerns have come to the aid of

crude bulls this week, with better-than-expected retail sales

and jobless claims figures allaying fears of a more rapid than

expected deterioration in U.S. economic conditions," said

Michael Brown, senior research strategist at Pepperstone.

As for lingering geopolitical risks, a fresh round of

negotiations began on Thursday to secure a ceasefire in the Gaza

war, even as Israeli troops continued their assault on the

Palestinian enclave.

The talks, which have been boycotted by Hamas, were extended

and will resume in the Qatari capital Doha on Friday.

Attention is also focussed on whether Iran will retaliate

over Israel's killing of Hamas political leader Ismail Haniyeh

in Tehran late last month.

"Expectations remain that a response will happen given that

Iran needs to save face amongst neighbour states," said Panmure

Liberum analyst Ashley Kelty.