UPDATE 10-Oil eases as Fed's Jackson Hole meeting gets underway

* Jackson Hole summit in focus for Fed rate cut signals
* Top waterways won't be as safe if oil exports cut to
zero-Iran
* Stock markets worldwide edge lower

(Updates to settlement)
By Devika Krishna Kumar
NEW YORK, Aug 22 (Reuters) - Oil prices weakened on Thursday
on worries about the global economy and as equity markets were
on edge over the uncertain outlook for U.S. interest rate cuts.
Traders are awaiting a speech from Federal Reserve Chair
Jerome Powell on Friday in Jackson Hole, Wyoming, that could
indicate whether the U.S. central bank will continue to cut
interest rates. Brent crude LCOc1 settled down 38 cents, or 0.6%, at
$59.92 a barrel by 12:34 p.m. ET (1634 GMT), while U.S. West
Texas Intermediate crude CLc1 ended the session 33 cents, or
0.6% lower at $55.35.
"The market will be shifting focus today to broader based
macro headlines with comments out of Jackson Hole likely to be
prioritized in this regard," said Jim Ritterbusch, president of
Ritterbusch and Associates.
"While we are not expecting any dramatic developments
capable of swinging the equities either way by more than 1% or
so, we feel that current bullish momentum in the oil market
could allow the energy complex to absorb bearish guidance much
easier than any negative Jackson Hole guidance that may be
forthcoming."
U.S. stocks turned lower on Thursday after the first
contraction in the manufacturing sector in nearly a decade and
comments from two Fed officials dampened hopes of future
interest rate cuts. The Jackson Hole speech is important for oil as signals from
the Fed on monetary easing affect the U.S. dollar, which fell on
Thursday against a basket of currencies .DXY . A weaker U.S.
currency tends to support oil prices.
Concerns over the impact of U.S.-China trade tensions on the
longest U.S. economic expansion on record prompted the Fed to
cut interest rates last month for the first time since 2008. The
prolonged trade spat has sparked worries about growth in oil
demand.
Forecasters such as the International Energy Agency have
been lowering forecasts for world oil demand.
U.S. President Donald Trump said on Wednesday he was "the
chosen one" to address trade imbalances with China, even as
congressional researchers warned his tariffs would reduce U.S.
economic output by 0.3% in 2020. Still, the price of Brent is up by about 13% this year,
supported by supply cuts led by the Organization of the
Petroleum Exporting Countries, and export cuts affecting Iran
and Venezuela which are under U.S. sanctions.
Iran said on Wednesday if its oil exports are cut to zero,
international waterways would not have the same security as
before, cautioning Washington against raising pressure on
Tehran. Oil prices were also supported as inventories at Cushing,
Oklahoma, the delivery point for U.S. crude futures, fell by
about 1.5 million barrels between Friday and Tuesday, traders
said, citing data from market intelligence firm Genscape.
Stockpiles at the storage hub have fallen for seven straight
weeks, according to government data.