* U.S. July nonfarm payrolls up more than expected * U.S. crude pares decline but seesaws after jobs data * Iran pipeline blast also supports prices * Coming up: CFTC positions data at 3:30 p.m. EDT Friday (Updates prices, market activity; changes byline and moves dateline from previous LONDON) By Robert Gibbons NEW YORK, Aug 5 (Reuters) - Brent crude prices bounced higher on Friday, lifted by a stronger-than-expected U.S. jobs report for July and rebounding from the day's lows on news of a pipeline fire in Iran. U.S. oil prices initially rallied after the Labor Department said nonfarm payrolls increased by 117,000 last month, above market expectations, as private employers stepped up hiring. [ID:nOAT004847] But trading was volatile and U.S. oil prices turned lower on pressure from Wall Street equities that slipped after the jobs data failed to alleviate fears of an economic slowdown. [.N] News of an Iranian pipeline explosion that shut flows of up to 40,000 barrels per day (bpd) lifted oil prices from early lows. But Iran, the second-largest OPEC producer after Saudi Arabia, later said it was pumping oil at full capacity. [ID:nL6E7J50F1] "A quick glance at the latest jobs report shows it is positive, better than expected. But whether the market will be able to stem its downslide after the recent stream of negative economic data remains to be seen," said Gene McGillian, analyst at Tradition Energy in Stamford, Connecticut. ICE Brent crude for September LCOU1 rose $1 to $108.25 a barrel by 11:05 a.m. EDT (1505 GMT), after trading as high as $110.26. Brent earlier fell to $104.30, the lowest since June 27, on concern oil demand will slip as U.S. growth falters and Europe's debt crisis worsens. It dropped nearly $6 in the previous session. U.S. September crude CLU1 fell 50 cents to $86.13 a barrel, off its $88.32 peak reached after the jobs report, but recovering from an earlier plunge to $82.87, the lowest since Nov. 26, 2010. It slid almost 6 percent on Thursday.

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