* Brent sheds nearly $2, U.S. crude loses over $2 * Coming Up: U.S. June non-farm payrolls data * Demand worries take centre stage after central bank moves * Oslo could put an end to oil strike (Updates prices) By Peg Mackey LONDON, July 6 (Reuters) - Oil fell below $99 a barrel on Friday as investors lost enthusiasm over central bank rate cuts and expected the Norwegian government to end an oil workers' strike. Central banks in China, the euro zone and Britain eased policy on Thursday, highlighting concern over the fragility of the global economy that has muddied the demand outlook for commodities. "The second interest rate cut in China within a month has fuelled concerns about a more significant weakening of growth," said a research note from Commerzbank. Brent dropped $1.62 to $99.08 by 1145 GMT -- after sinking to $98.84 in earlier trade. U.S. crude was down $2.03 at $85.19. "China's rate cut was a surprise and although it was meant to stimulate, it was interpreted as a sign of more trouble in the economy and it didn't really inspire," said Victor Shum, a senior partner at oil consultancy Purvin & Gertz. Worries about supply from Norway drove Brent to a one-month peak above $102 per barrel on Thursday, but prices gave up gains as the euro slid against the dollar after the European Central Bank cut rates. Adding to the bearish tone, the head of the International Monetary Fund voiced concern over the deterioration of the world economy, saying the IMF will downgrade some of its forecasts. Investors are now focusing on the all-important U.S. jobs data due later on Friday, which is expected to provide clues on the state of the world's biggest economy. Employers are expected to have added 90,000 new workers to their payrolls, according to a Reuters survey. That would be tepid but still better than the 69,000 jobs created in May - the fewest in a year. OSLO INTERVENES Norway's government could wade into a dispute between offshore oil workers and employers over pensions as early as Friday to force an end to a strike that has oil markets on edge. The strike, which began on June 24, has already slowed crude exports and cut Norway's oil production by around 13 percent and its gas output by around 4 percent. Norway's oil industry upped the ante on Thursday, calling for a lockout on July 9. "This affects all Norwegian off-shore oil production ... However, it also increases the likelihood of the Norwegian government intervening to end the strike," said Commerzbank. "It is not therefore surprising that the price increase has not been sustained." (Additional reporting by Ramya Venugopal, Luke Pachymuthu and Jessica Jaganathan in Singapore; editing by James Jukwey and Keiron Henderson)

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