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RTRS:UPDATE 1-Brent stays above $107, set for weekly gain; US jobs data eyed
 
* U.S. unemployment benefit data sparks optimism
* Refinery maintenance season to limit crude demand

* Tighter North Sea supplies support Brent

* Coming up: U.S. non farm payrolls data; 1330 GMT (Recasts, adds analyst quotes, updates prices)

By Jacob Gronholt-Pedersen

SINGAPORE, Feb 7 (Reuters) - Brent crude steadied above $107 a barrel on Friday, heading for a second weekly gain in three on optimism U.S. jobs data due later in the day will add to recent signs of economic improvement in the world's top oil consumer.

Brent notched up its biggest daily percentage gain in two weeks on Thursday, helped partly by a report that showed the number of Americans filing new claims for unemployment benefits fell slightly more than expected last week.

"The market is playing a bit of wait and see, but in general there is quite a bit of optimism we'll get good numbers and that is supporting oil," said Ben Le Brun, a market analyst at OptionsXpress in Sydney.

Brent crude was up 8 cents at $107.27 at 0602 GMT, after rising almost a percent in the previous session - its biggest daily gain since Jan. 22.

U.S. crude was down 19 cents at $97.65, hurt by expectations of lower demand during peak maintenance season.

Brent's premium to the U.S. benchmark CL-LCO1=R was at $9.62 a barrel. The spread fell to $7.94 a barrel on Wednesday, the tightest since Oct. 10.

JOBS NUMBERS

Large price swings are not expected ahead of the U.S. non farm payrolls data due at 1330 GMT.

A Reuters poll points to a recovery in U.S. jobs growth to 185,000 in January from a measly 74,000 in December.

"The outlook for the U.S. economy is one of the most important indicators for oil demand at the moment, and numbers outside of expectations could move prices in either directions," said Ric Spooner, chief market analyst at CMC Markets in Sydney.

Further signs of U.S. economic growth could prompt the Federal Reserve to curb its monetary stimulus programme, which has helped support risky assets such as commodities.

"I think the market will be fairly tolerant and not really think in terms of tapering unless we see very good or very bad numbers," Spooner said.

Tighter supply of North Sea crude in March could support the Brent benchmark. Loading of the four crude streams Brent, Forties, Oseberg and Ekofisk (BFOE) will average 890,000 barrels per day (bpd) in March, down from an expected 1.03 million bpd in February, according to loading programmes.

Oil prices are also expected to be aided by peak refinery maintenance season as a slew of refiners in the United States and Asia will shut down units in the second quarter.

"That is going to limit demand for crude, but product prices could go up due to limited supply," said Le Brun.

Investors will also keep a close eye on Saturday's talks with Iran as the U.N. nuclear watchdog hopes to persuade the Islamic state to finally start addressing long-held suspicions it has worked on designing an atomic bomb.

Tough international sanctions over the past two years have cut Iran's oil exports in half. (Editing by Richard Pullin and Himani Sarkar)
Source