UPDATE 5-Brent slips towards $106 ahead of Fed comments
* Investors await Fed statement for signals on stimulus plan
* U.S. Q2 GDP grows at 1.7 percent rate, beating analysts forecasts
* Coming up: EIA weekly inventory data; 1430 GMT
(Recasts, updates with U.S. data, prices)
LONDON, July 31 (Reuters) - Brent crude oil slipped towards $106 a barrel on Wednesday as investors awaited new signals from the Federal Reserve on its plan to roll back its stimulus programme after data pointed to accelerated economic growth in the world's top oil consumer.
But prices were set to post their biggest monthly rise in 11 months, helped by gains earlier in July as political tensions in the Middle East kept alive concerns about global oil supplies.
Brent slipped 63 cents to $106.28 a barrel by 1300 GMT but was on track for a monthly rise of 4 percent.
U.S. crude rose 43 cents to $103.51 and was headed for a near 7 percent monthly gain. It hit a 16-month high in early July.
The Fed will release a statement at 1800 GMT following its two-day policy meeting which could provide more clues on plans to roll back its monetary stimulus which has broadly supported commodities prices by offering high liquidity to the markets.
Ahead of that, data showed U.S. economic growth unexpectedly accelerating in the second quarter and higher-than-forecast private sector hiring in July, which could lead the Fed a step closer to cutting back its aid.
"Will (the Fed) try to clarify in even more detail timing on tapering and the length of the period over which low interest rates can be expected or will they leave it alone and not box themselves in any further? The latter approach would seem to be most sensible but it may disappoint markets that seem to need constant re-assurance that the drugs will not be withdrawn," PVM managing director David Hufton said.
U.S. futures were also supported by the American Petroleum Institute's report that showed crude stockpiles at the Cushing Oklahoma delivery point fell for a fifth straight week.
Market participants are now waiting for the more closely watched inventory report from the U.S. Energy Information Administration later in the day.
"The great surplus of crude in the Midwest is draining away so that should lead to a normal price relation with other crude oils in the Gulf Coast," according to Christopher Bellew, analyst at Jefferies Bache.
Hopes that Europe was pulling out of recession were boosted after unemployment in the euro zone fell for the first time in more than two years in June.
Investors were also awaiting manufacturing data later this week from China, which could highlight weakness in the world's No. 2 oil consumer.
Pumping of crude oil resumed through the Kirkuk-Ceyhan pipeline last night after repairs were completed following a bomb attack over the weekend.
Oil outages in Iraq, South Sudan, Libya and Iran have combined to help keep oil prices well above $100 a barrel, partly countering the rise in U.S. shale oil supply and worries about Chinese demand.
(Editing by William Hardy and David Evans)