* Weak Japan export data weighs, dims growth outlook
* U.S. oil inventories show unexpected draw
* Coming up: Federal Reserve rate decision at 1800 GMT (Updates detail, prices; paragraphs 4-7)
By Christopher Johnson
LONDON, Sept 17 (Reuters) - Oil prices fell on Thursday after weak Japanese data sounded alarm bells over the prospects for global growth, outweighing the bullish impact of a weaker dollar and a bigger-than-expected decline in U.S. crude oil stocks.
Japan's exports slowed for a second straight month in August in a sign China's economic slowdown could be damaging the world's third-biggest economy. ID:nL4N11K32W
The data follows worrying figures from other Asian economies, including South Korea and Taiwan, increasing anxiety over the consequences of a sharp slowdown in China.
North Sea Brent crude LCOc1 was down 50 cents at $49.25 a barrel by 1305 GMT, after hitting an early high of $50.14. U.S. light crude oil CLc1 was down 20 cents at $46.95 a barrel.
Both global benchmarks had rallied sharply over the last three days as the dollar weakened on expectations that the U.S. central bank, the Federal Reserve, would maintain interest rates at their current, very low, levels.
The Federal Reserve was due to issue a policy statement at 2 p.m. EDT (1800 GMT) on Thursday and economists saw about a one-in-four chance of a U.S. rate increase. ID:nL1N11M10C
The dollar eased ahead of the U.S. rate announcement. FRX/
Higher U.S. interest rates would be likely to boost the U.S. currency, making dollar-denominated oil more expensive for importers holding other currencies. ID:nL1N11H1KJ
This week's rally has made a further sharp sell-off in oil less likely, said Robin Bieber, a technical analyst and director of London brokerage PVM Oil Associates.
"It's out of dump-danger at the moment," Bieber said.
U.S. oil data this week suggested the world's biggest oil market may be beginning to tighten.
The U.S. Energy Information Administration (EIA) on Wednesday reported the largest crude drawdown since February 2014 at the Cushing, Oklahoma, delivery point. ID:nL4N11M1F3
"This is a result of higher refining activity and lower U.S. crude production, which is helping the U.S. inventory glut to ease off," Daniel Ang, analyst at Singapore brokerage Phillips Futures, said.
U.S. oil output has begun to ease after six years of sharp increases. EIA 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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But the world is still awash with oil, with global production still running at more than 2 million bpd above demand, filling oil stockpiles around the world. ID:nL3N0Z31CC