China39;s economy grows 4.5 in first quarter
U.S. interest rates and dollar strength weigh
Baghdad, KRG take step towards Iraq northern oil exports restart
Coming up API supply report at 2030 GMT

April 18 Reuters Oil fell for a second day on Tuesday as upbeat Chinese economic data failed to deflect the focus from a possible increase to U.S. interest rates and wider concern about the growth outlook.

Crude prices were also pressured by the Iraq federal government and Kurdistan Regional Government KRG taking a step towards a resumption in northern oil exports from the Turkish port of Ceyhan after they were halted last month.

Brent crude fell by 8 cents, or 0.1, to 84.68 a barrel by 1115 GMT, giving up early gains. U.S. West Texas Intermediate lost 14 cents, or 0.2, to 80.69.

The next step may depend on global growth and whether the economy can weather the recent storm, particularly in the U.S., where tighter credit could significantly weigh on growth for the rest of the year, said Craig Erlam of brokerage OANDA, referring to the oil price outlook.

Earlier in the session oil had found support from figures showing that China39;s economy grew by a faster than expected 4.5 in the first quarter and that oil refinery throughput rose to record levels in March.

As things stand, it39;s all systems go in China, much to the relief of those betting on higher oil prices, said Stephen Brennock of oil broker PVM.

But the prospect of another increase to U.S. interest rates,…