RTRS:NYMEX-Oil eyes best week in a month on upbeat data, supply risks
Aug 2 (Reuters) - U.S. crude oil futures steadied on Friday but were headed for their biggest weekly gain in a month, supported by upbeat global economic data and supply disruptions in Africa and Iraq.
Investors are likely to be on edge ahead of the U.S. employment report due later in the day that should provide more clues on the strength of the world's top economy and oil consumer.
FUNDAMENTALS
* U.S. crude for September delivery was little changed at $107.90 a barrel by 0039 GMT. The contract is up 3 percent for the week, its best showing since early July.
* Brent crude was nearly flat at $109.64 a barrel, but has gained 2.3 percent for the week, also its biggest such increase since early July.
* The U.S. employment report is expected to show that 184,000 jobs were created in July compared with 195,000 jobs in June, with the jobless rate seen easing to 7.5 percent from 7.6 percent. A strong number may prop up the dollar and hit commodities as it adds to the case for the Federal Reserve to start tapering its stimulus later this year, even though the U.S. central bank gave no indication this week that that will happen as early as September.
* Ahead of that report, data on Thursday showed U.S. factory activity hitting a two-year high in July and first-time applications for jobless benefits hit a 5-1/2-year low last week.
* Strong Chinese data which showed manufacturing activity in the world's No. 2 oil consumer unexpectedly picking up last month also backed gains in oil prices.
* Concerns over supplies from Libya, Iraq and Nigeria helped trim OPEC output to a four-month low in July, according to a Reuters survey. In Libya, protests at oilfields and terminals cut average supply to 1.15 million barrels per day in July, according to the survey, down 150,000 bpd from June.
* Iraq's production has also come under pressure as Sunni insurgents target its northern pipeline, while technical problems are curbing output in the south.
MARKETS NEWS
* The U.S. dollar held onto overnight gains on Friday, having posted its biggest one-day rally in a month after a batch of upbeat economic data supported the Federal Reserve's plan to start reducing stimulus this year.
