* Worries about Libyan supply underpin prices * Growth in China's crude imports slows in 2013 * Saudi Arabia raised production in December * Coming Up: U.S. non farm payrolls; 1330 GMT (Adds details, quote, updates prices) By Jacob Gronholt-Pedersen SINGAPORE, Jan 10 (Reuters) - Brent crude rose towards $107 a barrel on Friday amid worries about supply from North Africa, although speculation that strong U.S. data could prompt the Federal Reserve to further taper its stimulus capped gains. Oil markets offered a muted reaction to mixed Chinese trade data released on Friday, with traders now waiting for a key report on U.S. jobs that are forecast to have risen by a solid 196,000 in December. "There is lots of second guessing going on about the Fed's intentions and non-farm payrolls," said Ben Le Brun, a market analyst at OptionsXpress in Sydney. Brent crude was up 46 cents at $106.85 per barrel by 0743 GMT, after settling 76 cents lower in a volatile session that saw the contract swinging by more than $2. The benchmark was on track to end the week flat, as investors weighed rising production in Libya with increased tension in the country and elsewhere in the region. U.S. oil was up 92 cents at $92.59 per barrel, after touching an eight-month low of $91.24 on Thursday and on course to end lower for the second straight week. "Generally we see markets quieting down ahead of key data, but the geopolitical situation in the Middle East is feeding through to create a lot of volatility," Le Brun said. "It is very much a double-edged sword. A positive jobs report will be supportive for oil prices, but then that could bring forward tapering. It's very, very hard to pre-empt." Technicals indicate that U.S. oil may to rebound to $93.48, while Brent may bottom around $105.59, according to Reuters market analyst Wang Tao. CHINA IMPORTS Oil prices were also underpinned by data showing Chinese crude imports rose 13 percent in December to a record 6.31 million barrels per day. But imports by the world's No.2 consumer of oil after the United States rose by a smaller 4 percent in 2013, versus a near 7 percent annual increase in 2012. Chinese trade data for December was a mixed bag, with exports growing a little less than expected at 4.3 percent from a year earlier and imports outpacing forecasts with an increase of 8.3 percent. On the supply side, Saudi Arabia increased output last month to 9.819 million bpd, from 9.745 million in November, a source said. The world's largest oil exporter also raised supply to the market, which may differ from production depending on movement in or out of storage. Uncertainty over supplies elsewhere in the key oil producing region have spurred volatility in oil markets. Libya more than doubled its production this week to around 650,000 bpd, but the situation in the country remains unstable amid tension between government forces and rebels. South Sudan's oil production remained a concern, even after the government and rebels last week agreed to peace talks. "Further easing of tensions in Libya, Iraq and South Sudan will trigger concerns on a potential supply glut in the global markets, hence dampening crude oil prices," analysts at Phillip Futures said in a note. (Additional reporting by James Topham; Editing by Clarence Fernandez)

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