* Weak Japan export data weighs, dims growth outlook
* U.S. initial jobless claims drop, supportive to oil
* Coming up: Federal Reserve decision at 2 p.m. EDT (1800
GMT)
(Rewrites throughout, updates prices, changes byline, moves
dateline from previous LONDON)
By Robert Gibbons
NEW YORK, Sept 17 (Reuters) - Brent crude slipped and U.S.
futures seesawed on Thursday in volatile trading as investors
awaited the Federal Reserve's interest rate decision later in
the day.
The U.S. central bank will have an announcement at 2 p.m.
EDT (1800 GMT), which could signal the first U.S. interest rate
rise for a decade. ID:nL1N11M10C
Economists saw about a one-in-four chance of a rate
increase. The dollar eased ahead of the announcement. A weaker
U.S. currency can be supportive to dollar-denominated
commodities like oil. FRX/
Both contracts felt pressure early on Thursday after weak
Japanese data revived fears over the prospects for global
growth.
Japan's exports slowed a second straight month in August, a
sign that China's economic slowdown could be damaging the
world's third-biggest economy. ID:nL4N11K32W
The Japanese figures follow worrying data from other Asian
economies, including South Korea and Taiwan, creating anxiety
over possible effects of slower growth in China.
"Brent structure has been appreciably weaker than that of
WTI as it remains much more sensitive to the bearish element of
increasing availability of North Sea barrels, excessive OPEC
output and Chinese economic concerns," Jim Ritterbusch,
president at Ritterbusch & Associates, said in a note.
Brent crude for November delivery LCOc1 was down 30 cents
at $49.45 a barrel at 11:14 a.m. EDT (1514 GMT), having swung
from $48.80 to $50.14.
U.S. October crude CLc1 was up 20 cents at $47.35, having
traded from $46.33 to $47.71.
Both crude oil benchmarks rallied sharply over the last
three days as the dollar weakened on expectations that the U.S.
central bank would maintain interest rates at current, very low,
levels.
Supportive U.S. jobless claims data offset some of the gloom
about Asia, curbing oil's losses.
The number of Americans filing new applications for
unemployment benefits fell last week to the lowest level in
eight weeks, suggesting the U.S. labor market was strong despite
a tightening in financial market conditions. ID:nL1N11N0W5
"The big drop in U.S. weekly jobless claims is very
supportive for the demand outlook," said John Kilduff, partner
at Again Capital LLC in New York.
U.S. crude stocks fell last week, both industry and
government data released this week showed, lending support to
oil futures. EIA/S API/S
U.S. oil output has begun to ease after six years of sharp
increases. Energy Information Administration data shows U.S.
crude and condensate production peaked at 9.612 million barrels
per day (bpd) in April and had declined by 316,000 bpd by June.
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Falling production underpins U.S. oil: Kemp ID:nL5N11M2CT
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