UPDATE 2-Brent holds above $102 on Fed uncertainty
* Fed may scale back bond-buying programme in Sept policy meeting
* China PMI slows in June, new orders fell for Indian producers
* Coming up: Euro zone Markit Mfg PMI for June; 0758 GMT
(Recasts lead, adds quotes)
SINGAPORE, July 1 (Reuters) - Brent crude held above $102 a barrel on Monday as uncertainty over the U.S. Federal Reserve's bond-buying programme kept investors on edge, while weak factory data from China and India raised demand growth worries and capped oil price gains.
A top Fed official signalled that the U.S. central bank may move to roll back its bond purchases in its September meeting, a move that could strengthen the dollar. But the timing will also depend on the U.S. labour market, and investors are waiting for more clues from a job report on Friday.
"Weaker job data on Friday could encourage investors to bet on long positions as it would mean that the end of QE (quantitative easing) could be postponed," Yusuke Seta, a commodity sales manager at Newedge Japan said.
Dollar-denominated commodities move inversely to the greenback, and fluctuations in the currency over the past weeks have been a primary mover of oil prices. A weak jobs report would undercut the dollar again and lift Brent.
Brent crude dropped as low as $101.63 a barrel after the Chinese factory data, before recovering to $102.23 by 0812 GMT, up 7 cents.
Front-month Brent shed more than 7 percent in the second quarter ended June, its third straight quarterly decline and the longest such stretch of losses in 15 years.
U.S. crude fell 1 cent to $96.55 a barrel.
Jitters over the Fed's bond-buying programme partly led hedge funds and other large speculators to slash their bets on rising U.S. crude oil prices in the seven days to June 25, regulatory data showed on Friday.
Weak economic data from emerging economies also continues to drag on oil prices.
Crumbling foreign and domestic demand knocked factory activity in China down to multi-month lows and shrank orders for Indian producers for the first time in more than four years.
"We're likely to see China growing slower going forward and that is going to be reflected in slower oil demand growth," said Lee Chen Hoay, an analyst at Phillips Futures.
Uncertainty over the Fed's programme and the slow-growth outlook helped to offset curtailments in supply that might have otherwise pushed up prices.
Oil supply in the United Kingdom fell in June on lower output from Britain's Buzzard field, and as a Reuters survey showed, OPEC pumped less crude due to disruptions in Libya and Nigeria.
Mexican crude production also hit its lowest in nearly two years in May, while exports were the weakest in more than two decades, official data showed.
In the Middle East, investors are closely watching whether Iran's president-elect Hassan Rouhani can improve the country's antagonistic relations with the West, while protests flared up again in Egypt.
The United States has maintained its tough stance on Iran, with its top U.S. energy official saying on Sunday that he believed the oil market could cope with any further reduction of Iranian oil exports from the tightening of sanctions on Tehran over its disputed nuclear programme.
(Editing by Tom Hogue)