UPDATE 6-Oil edges up on positive U.S. data
* U.S. retail sales beat expectations, jobless claims fall
* Japanese stock market loses 6.4 percent
* IEA, other oil forecasters point to weak global demand
* Weaker dollar, Libya supply disruption lend support
(Updates prices, changes byline, dateline, previous LONDON)
NEW YORK, June 13 (Reuters) - Brent crude oil reversed an earlier loss to trade slightly higher on Thursday as a higher-than expected rise in U.S. retail sales and fall in jobless claims boosted the U.S. economic outlook, although subdued global demand limited the rebound.
U.S. retail sales increased 0.6 percent in May after edging up 0.1 percent in April. A separate report showed the number of Americans filing new claims for jobless benefits fell last week, nearing its lowest level in five years.
Wall Street was little changed on Thursday as the encouraging data offset concerns over an earlier-than-expected winding down of central bank stimulus.
Brent crude rose 38 cents to $103.87 a barrel by 11:44 a.m. EDT (1544 GMT), having traded as low as $102.75. Prices have declined from a 2013 high near $120 reached Feb. 8.
U.S. oil fell 3 cents to $95.85.
Global stock markets fell for a third day on Thursday and the U.S. dollar hit a 10-week low against the yen as investors unwound bets linked to central bank stimulus measures that have buoyed many asset markets.
European shares fell as much as 1.1 percent before recovering slightly, while Japan's Nikkei fell 6.4 percent, its second-biggest daily drop in more than two years.
That rattled markets and left Asian shares at their lowest level of the year.
The dollar lost 1.8 percent against the yen as investors spooked by Japan's stock market retreat unwound bets the yen would weaken.
"All of this has made the market extremely volatile, and I think the volatility is going to stay here while the market continues rolling back down," said Mark Waggoner, president of Excel Futures in Bend, Oregon.
Oil was down earlier in the session on reports indicating weak demand, including a lowered forecast for global economic growth this year by the World Bank.
"The demand picture is still very subdued at the moment," said Carsten Fritsch, analyst at Commerzbank, who added that a falling U.S. dollar earlier in the day lent support to Brent.
Also, on Wednesday, the International Energy Agency said modest economic growth was limiting oil demand worldwide, and some developed economies would see absolute declines in oil consumption in 2013.
Oil drew support from disruption to flows. Libya is struggling to hold output stable, while supply of North Sea crude, which underpins Brent, is expected to drop more sharply than usual due to maintenance this summer.
(Additional reporting by Manash Goswami and Alex Lawler; Editing by Bernadette Baum)