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UPDATE 4-Oil eases to $112 ahead of U.S. jobs data

Friday, 5 Oct 2012 | 8:10 AM ET

* Demand outlook stays bleak on fragile global economy

* Coming Up: U.S. non-farm payrolls; 1230 GMT

* Turkey-Syria violence stokes supply concern

(Updates prices) By Alice Baghdjian

LONDON, Oct 5 (Reuters) - Oil slid to around $112 per barrel on Friday as investors awaited data that is expected to show U.S. unemployment is on the rise, reinforcing concern that a fragile global economic recovery is still under threat.

A spate of gloomy figures has already shown a turnaround in China may be delayed and that the euro zone is almost certainly heading into recession.

"Mainly it's just investors remaining cautious ahead of the release of the U.S. non-farm payrolls, so it's a little bit of profit taking following yesterday's gains," Myrto Sokou, senior analyst at Sucden Financial Research, said of Friday's price fall.

Brent futures fell more than $1 a barrel and by 1156 GMT were trading at $112.10, down 48 cents.

U.S. crude futures eased 65 cents to $91.06 per barrel, after climbing nearly 4 percent in the prior session.

Crude futures had fallen 3-4 percent in a single, mid-week session on the figures from China, the world's second-biggest oil consumer.

TEST OF FED STRATEGY

Data from the United States this week suggested a nascent recovery, and investors are seeking further confirmation from the non-farm payrolls data due later in the day.

The United States likely added 113,000 jobs in September, up from 96,000 in August, with the unemployment rate edging up to 8.2 percent, according to a Reuters survey.

The data will be the first test of whether the Federal Reserve's strategy to buy $40 billion in bonds every month from September to boost the labour market has started to bear any fruit.

"A bad non-farm payroll number would only likely have a negative impact on equity and commodities prices," said Jason Schenker, president of research firm Prestige Economics.

"It is unlikely the Fed would act significantly in the wake of having done so much at the September meeting."

While the gloomy global economy has hurt the outlook for fuel demand, oil prices are getting support from continuing tensions in the Middle East.

Oil rose sharply on Thursday after Turkey stepped up its strikes against Syria and won parliamentary approval for further military action, pushing Brent prices up 4 percent.

The news amplified oil supply concerns after Iran's exports dropped following sanctions from the United States and European Union on the Middle Eastern nation's oil shipments.

(Additional reporting by Ramya Venugopal in Singapore; Editing by Pravin Char)

((peg.mackey@thomsonreuters.com)(+44 207 542 7714))

Keywords: MARKETS OIL/