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RTRS:UPDATE 3-Brent rises towards $106 ahead of U.S. jobs data
 
* ECB, BOE signal no rush to withdraw stimulus

* Libya's main export terminal halted, adding to outages

* Coming up: U.S. non-farm payrolls June at 1230 GMT (Changes dateline to LONDON, updates prices, adds comment)

By Julia Payne

LONDON, July 5 (Reuters) - Brent crude rose towards $106 a barrel on Friday, and U.S. oil was on course for its strongest weekly gain since April, ahead of U.S. jobs data that could bolster confidence in demand prospects for the world's largest oil consumer.

Jobs growth in the United States probably slowed slightly in June, buoying the outlook for fuel demand, according to a Reuters survey.

But such numbers could also support the Federal Reserve's case to start slowing its bond purchases later this year, which would sap liquidity and drag on commodity prices.

Brent crude for August delivery rose 18 cents to $105.77 by 1001 GMT after declining on Thursday for the first time this week as supply concerns in the Middle East eased following the ouster of Egypt's president.

Front-month prices have gained 3.2 percent so far this week, the largest weekly rise since the first week of June.

U.S. crude futures fell 23 cents to $101.01 a barrel but remained on track for their biggest weekly climb since April after closing at a 14-month high on Wednesday. There was no settlement on Thursday due to the Independence Day holiday.

"With technical support and stronger fundamentals, there is no reason to be selling oil," said Michael McCarthy, chief market strategist at CMC Global Markets in Sydney, pointing to Wednesday's data that showed a large drawdown on U.S. crude stockpiles last week.

Supplies of almost all physical crude grades consumed by Europe are now short including Russian, Iraqi, Libyan and African grades. North Sea supplies, which underpin Brent, are expected to be extremely low in the coming months when main grade Forties output will be reduced due to maintenance in August.

Libyan ports and various fields have been plagued by worker protests, and its largest export terminal was shut late on Thursday. Port guards locked the gate over salary complaints, preventing workers from continuing operations.

Brent's premium to the U.S. benchmark CL-LCO1=R fell to its lowest since December 2010 on Wednesday.

In its weekly energy note, Goldman Sachs said the tightening spread was "a reflection of an anticipation of inventory draws in the Midcontinent on the back of increased pipeline and refinery operations".

Eugen Weinberg, an oil analyst at Commerzbank in Frankfurt, said the spread narrowing came in faster than expected. He expected it to narrow once again.

Clear signals of loose monetary policy ahead from central banks in Britain and Europe on Thursday may lure investors back to riskier assets such as oil, he said.

The toppling of Egyptian President Mohamed Mursi divided the Middle East on Thursday, with Tunisia's ruling Islamists denouncing it as a coup while Gulf Arab leaders celebrated.

"We do not expect the political situation, even in flux, to undermine oil supply or transit in Egypt," BNP Paribas analysts said in a note.

The uprising has not affected operations at Egypt's Suez Canal, a vital waterway for oil shipments.

Elsewhere, seaborne oil exports from OPEC, excluding Angola and Ecuador, will rise by 540,000 barrels per day (bpd) in the four weeks to July 20, an analyst who estimates future shipments said. (Additional reporting by Florence Tan in Singapore; Editing by Jane Baird)
Source