(Reuters) - Brent crude oil rose to $108 a barrel on Friday, erasing an earlier decline, as reports of an explosion on an oil pipeline in Iran helped counter concern about weakening economic growth and oil demand. Brent was up $1.10 at $108.35 a barrel as of 0932 GMT. Prices rebounded on reports that an Iranian oil pipeline exploded, a trader and an analyst said. Earlier in the session, Brent fell as much as $2.95 to $104.30, its lowest since June 27, after dropping almost $6 in the previous session, pressured by concern that oil demand will weaken as U.S. economic growth falters and Europe's debt crisis worsens. U.S. crude rose 27 cents to $86.90, having earlier plunged as much as $3.76 to $82.87, the lowest price since November 26. Other commodities including copper also fell and European shares slid to a 14-month low. "There is debate in the market that U.S. may enter a double-dip recession and the euro zone may break up," said Carsten Fritsch, analyst at Commerzbank in Frankfurt. "It's still far from reality, but the market is concerned about these two topics at the moment." "It is still too early to say if this rout is over particularly with the upcoming U.S. labor report." Investors across the financial markets are awaiting the U.S. employment data due later in the day for the latest indication on the health of the world's largest economy and oil consumer. Payrolls in July probably rose by 85,000, according to a Reuters survey, after a small 18,000 gain in June. The unemployment rate is expected to hold steady at 9.2 percent. (Reporting by Alex Lawler; Editing by Jason Neely)

Source