* Potential hurricane lifts U.S. prices
* Russian, U.S. air strikes in Syria introduce Brent risk
premium
* But outlook remains weak as Asia's economies stall
* Dubai physical crude prices at more than 6-year lows
(Updates prices, adds China holiday)
By Henning Gloystein
SINGAPORE, Oct 1 (Reuters) - Crude oil prices edged up on
Thursday as demand was estimated to have risen in the first half
of the year, but a steeper rise was prevented by renewed signs
of Asia's economic slowdown.
World oil demand surged in the first six months this year
against the same period in 2014, due to a halving in crude oil
prices and significant declines in the price of most fuels in
many consuming countries, according to national estimates
submitted to the Joint Oil Data Initiative (JODI).
JODI reported consumption averaged 71.4 million barrels per
day (bpd) in the first six months of this year, up from 69.1
million bpd in the year-ago period, an increase of 2.3 million
bpd or 3.3 percent.
Traders also said a political risk premium had re-entered
oil markets over Syria, where Russia and the United States are
carrying on bombing campaigns without coordination, triggering
fears of unintentional clashes.
In U.S. markets, hurricane Joaquin strengthened in the
Atlantic and could become a major storm, the U.S. National
Hurricane Center said, although forecast models did not agree on
whether it would make landfall in the United States.
U.S. West Texas Intermediate (WTI) futures CLc1 were at
$45.69 a barrel at 0638 GMT, up 60 cents from their last
settlement. Brent crude futures LCOc1 were at $48.82 per
barrel, up 45 cents.
Liquidity in Asian trading hours was limited due to the
start of China's eight-day National Holiday.
CHEAPER PHYSICAL CRUDE
Despite stronger futures, physical crude markets weakened
amid concerns over Asia's economic slowdown.
Asia's benchmark physical price, Dubai crude, averaged
$45.375 a barrel for September, the lowest since February 2009,
traders said on Thursday.
South Korea's September crude imports fell 0.8 percent from
a year earlier to 76.1 million barrels, preliminary official
data showed.
Across Asia, there were more signs of slowdown.
In China, Asia's biggest economy, activity in the
manufacturing sector contracted for a second straight month in
September, an official survey showed on Thursday, and in the
region's second-largest economy, Japan, manufacturers'
confidence worsened in the three months to September, a central
bank survey showed.
Data from Indonesia and Malaysia implied a worsening
economic outlook for Southeast Asia, and Morgan Stanley (NYSE:MS) said it
expected "growth in ASEAN4 (Singapore, Philippines, Indonesia
and Thailand) will likely be lower for longer."
Asia's slowdown contributed to a fall in Brent and WTI
prices by almost a quarter since June.
(Editing by Ed Davies and Gopakumar Warrier)