* N.Sea work, embargo on Iranian oil support prices * U.S. crude stocks fall sharply * ECB disappointment reassessed * Coming Up: U.S. July nonfarm payrolls data (Recasts, adds quote, updates prices, changes dateline from SINGAPORE) By Simon Falush LONDON, Aug 3 (Reuters) - Brent crude oil reached $107 a barrel on Friday, as investors awaited key U.S. jobs data that could bolster hopes that the Federal Reserve may do more to stimulate the economy. Brent crude gained $1.10 cents to $107.00 per barrel by 0831 GMT. It was on track for its highest close since July 19. U.S. oil rose 98 cents to $88.11. Investors were hopeful that weak non-farm payrolls data, due at 1230 GMT, may prompt the U.S. Federal Reserve into a third round of bond purchases at its next policy meeting in September. Observers said that the market was also bouncing back from a sell-off the previous session on disappointment that the European Central Bank governor Mario Draghi did not outline more immediate measures to support the economy. "At the second look the ECB announcement is not so negative," said Eugen Weinberg, analyst at Commerzbank. Concerns over supply from the Middle East and the North Sea also supported prices. The U.S. Congress passed a new package of sanctions against Iran that aims to punish banks, insurance companies and shippers that help Tehran sell its oil. This builds on oil trade sanctions signed into law in December that prompted buyers in Japan, South Korea, India and other nations to slash their purchases of Iranian oil. "The fighting in Syria, tensions in Iran, the North Sea maintenance plan and reduced OPEC daily supply are all coming together and providing support to Brent (prices)," said Nick Trevethan, senior commodities strategist at ANZ Bank in Singapore. Maintenance work in the British sector of the North Sea will cut crude oil production in September. The Brent contract is based on four North Sea crude oils --Brent, Forties, Oseberg and Ekofisk -- and export programmes for September were expected to show a sharp drop. Seaborne oil exports from OPEC, excluding Angola and Ecuador, will fall by 120,000 barrels per day in the four weeks to Aug. 18, UK consultancy Oil Movements said. IRAQ UNCERTAINTY Adding to supply uncertainty, Iraq's semi-autonomous region of Kurdistan plans to halt oil exports on Aug. 31 if the central government does not make all outstanding payments, the region's minister of natural resources said. Middle East tension increased, with former U.N. Secretary-General Kofi Annan quitting as international peace envoy for Syria, frustrated by "finger-pointing" at the United Nations, while the armed rebellion against President Bashar al-Assad becomes increasingly bloody. Also lending support, U.S. crude oil stockpiles last week fell by their most since December, while crude imports dropped and oil products also posted unexpected declines, federal government data showed on Wednesday. Domestic stocks of crude, excluding oil held in the Strategic Petroleum Reserve, fell 6.52 million barrels to 373.59 million barrels in the week to July 27, the Energy Information Administration reported. Analysts polled by Reuters had forecast a much smaller drop of 700,000 barrels. Providing a bright spot, China's services sector expanded in July at a healthy clip, in contrast to a struggling manufacturing sector, although surveys released on Friday showed some signs of weakness in new orders and pressure from overcapacity. (Additional reporting by Jessica Jaganthan in Singapore; editing by Keiron Henderson)

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