UPDATE 7-Brent crude slumps to 8-month low on weak US jobs data

* Brent crude oil futures lowest since August

* U.S. jobs figures disappoint markets

* Biggest weekly drops in oil futures since June

* Korean tensions, Iran nuclear talks eyed

NEW YORK, April 5 (Reuters) - Brent crude oil fell to an eight-month low below $105 a barrel on Friday as data showed a much sharper slowdown in hiring by U.S. employers than analysts had expected, feeding worries about the economy and potential fuel demand.

The U.S. Labor Department reported that employers added just 88,000 jobs in March, the slowest pace of hiring in nine months. The jobless rate ticked 0.1 point lower to 7.6 percent, largely due to people dropping out of the workforce.

Analysts polled by Reuters had predicted a 200,000 increase in U.S. jobs, down from 236,000 in February.

John Kilduff, a partner at Again Capital LLC in New York said the jobs report was "a real disappointment".

"The recent decline in crude oil prices seemed to foreshadow this negative data point and the outlook for energy demand growth will be impaired as a result," Kilduff said.

Oil was set for its biggest decline in more than six months with Brent and U.S. crude both down by more than 5 percent.

At 10:53 a.m. EDT (1453 GMT), Brent was down $1.90 at $104.44 a barrel, having earlier fallen more than $2 to a low of $104.20, its lowest price since August.

U.S. crude dropped 90 cents to $92.37, off an earlier low of $91.91 a barrel.

Data from top oil consumer the United States has disappointed all week with weaker-than-expected growth in manufacturing, private sector hiring and employment. A surge in U.S. crude inventories to the highest since 1990 has further pressured prices.

Oil and commodities markets started 2013 in a buoyant mood on hopes of a sharp revival in global economic activity.

However, this optimism faded through the first quarter as data showed slower-than-expected growth in emerging economies, deepening recession in parts of Europe and a tepid expansion in the United States.

Even an aggressive move by the Bank of Japan to pump more than $1.4 trillion into the economy in less than two years failed to lift investor confidence.

OPEC

Abdallah Al-Badri, Secretary General of the Organization of the Petroleum Exporting Countries, said on Thursday oil prices were at a comfortable level for both producers and consumers.

But Badri told an oil conference in Paris that "if prices fall below certain levels, then many investors will find their developments no longer viable".

Analysts say OPEC could be forced to act if oil prices drop much further.

"At some point, OPEC will have to do something if prices fall below $100," said Carsten Fritsch, senior oil analyst at Germany's Commerzbank. "OPEC would either have to cut output, or at least, not increase production as they have been planning."

Investors also kept a wary eye on escalating tensions on the Korean peninsula and a standoff between Iran and the West over Tehran's disputed nuclear programme.

World powers met on Friday in the Kazakh city of Almaty to urge Iran to accept their offer to ease some economic sanctions if it ceases its most sensitive nuclear work.

Although there is little chance of a breakthrough, the six powers, the United States, Russia, China, France, Britain and Germany, will be mindful of Israel's impatience with the current diplomatic efforts.

Investors are worried about risks from North Korea since it decided to ban entry to workers from the South to their joint industrial complex, and Washington made military moves and remarks showing that it takes Pyongyang's threats to attack the United States seriously.