* Canadian dollar dips 0.1% against the greenback * Loonie trades in a range of 1.2501 to 1.2522 * Price of U.S. oil falls 0.6% * Canadian 10-year yield eases half a basis point to 1.256% TORONTO, Aug 12 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Thursday as concern about the spread of the Delta variant of the coronavirus weighed on the price of oil, one of Canada"s major exports. The International Energy Agency (IEA) said that rising demand for oil reversed course in July and was set to proceed more slowly for the rest of the year after the latest wave of COVID-19 infections prompted countries to bring back restrictions. U.S. crude prices fell 0.6% to $68.86 a barrel, while the Canadian dollar was trading 0.1% lower at 1.2516 to the greenback, or 79.90 U.S. cents. Still, the loonie has recovered from its weakest level in nearly two weeks on Tuesday at 1.2589 as oil clawed back some recent losses and U.S. inflation data cooled talk of a rapid reeling-in of Federal Reserve stimulus. Investors are eying a meeting of central bankers in Jackson Hole, Wyoming, on Aug. 26-28 for clues on when the Fed could reduce its massive bond holdings. The loonie traded on Thursday in a range of 1.2501 to 1.2522. Canadian government bond yields were mixed across the curve, with the 10-year easing half a basis point to 1.256%. On Wednesday, it touched its highest in nearly four weeks at 1.295%. (Reporting by Fergal Smith Editing by Chizu Nomiyama)