* 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 (Changes dateline, previous SINGAPORE, adds quotes) By Lin Noueihed SINGAPORE, Jan 10 (Reuters) - Oil rebounded from days of declines to climb towards $107 a barrel on Friday, but gains were capped by speculation that strong U.S. data could prompt the Federal Reserve to further taper its stimulus. Oil markets offered a muted reaction to mixed Chinese trade data released earlier on Friday, with traders now awaiting a report on U.S. jobs that are forecast to have risen by a solid 196,000 in December. "We are at multi-week lows and you will get some buying at these levels regardless of the U.S. payrolls data," said Michael Hewson, analyst at CMC Markets in London. "Regardless of payrolls numbers this afternoon, you could see further declines. If figures are good then the expectations will start to shift to the next Fed meeting... and the potential for more tapering." Brent crude futures were up 51 cents at $106.90 per barrel by 0920 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, after falling to near two-month lows on Thursday, as investors weighed rising production in Libya with increased tension in the country and elsewhere in the region. U.S. oil rose by more than $1 before paring gains to trade 79 cents up at $92.45 per barrel at 0921 GMT. It touched an eight-month low of $91.24 on Thursday and was on course to end lower for the second straight week. "We're down quite a lot since late December. The lows we saw in November and June last year are acting as a barrier," Hewson said, referring to the Brent contract. 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 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 also 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. "The Chinese data released overnight is pulling oil up," said Commerzbank analyst Carsten Fritch. Uncertainty over supplies have spurred volatility in oil markets in recent days. Libya more than doubled its output this week to some 650,000 bpd, but the situation remains unstable amid tension between government forces and rebels. "Oil output from Libya is priced in and there is no chance production will be more than that for the time being because the rest of the fields are in the east," Fritch said. (Additional reporting by Jacob Gronholt-Pedersen in Singapore, editing by William Hardy)

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