UPDATE 1-Brent holds above $114 as demand hopes offset easing Syria worries
* As Obama pushes to punish Syria, lawmakers fear deep U.S. involvement
* Asian markets mark second day of gains after upbeat factory data
* Brent to end rebound in $114.77-$115.38 range -technicals
* Coming Up: U.S. ISM Manufacturing PMI Aug; 1400 GMT
(Adds comments, updates prices)
SINGAPORE, Sept 3 (Reuters) - Brent futures edged lower on Tuesday as worries over a military strike on Syria eased, but held above $114 a barrel as investors focused on prospects of a revival in demand growth with factory output across most of the world improving.
Better data from Europe and China and a steady recovery in the United States pointed to the global economy turning a corner. Investors are now awaiting U.S. jobs data on Friday and a clearer indication from the Federal Reserve on the timing of a rollback in its monetary stimulus to gauge the outlook for oil.
Brent crude slipped 16 cents to $114.17 a barrel by 0508 GMT. U.S. oil fell 93 cents to $106.72 from Friday's settlement. Due to the Labor Day holiday, there was no Monday settlement for the U.S. benchmark.
"Oil may not move out of its current range till the employment numbers are out unless there is a sudden escalation in tensions in Syria," said Ken Hasegawa, a commodity sales manager at Newedge Japan. "The market is also waiting for details on the Fed's plan to cut back its stimulus."
Brent may trade between $112 and $115 a barrel and the U.S. benchmark in a $104-$109 range till the jobs numbers are out on Friday, he said.
Factory activity in the euro zone rose at its fastest pace in over two years, while China's manufacturing sector grew in August for the first time in four months, according to business surveys published on Monday. Participants are waiting for the U.S. Institute of Supply Management to publish its bellwether PMI for U.S. factories later in the day.
"The long awaited rotation of global growth towards the big advanced economies appears to be underway with business surveys there improving and growth in industrial output now picking up towards rates seen in emerging economies," analysts at National Australia Bank said in a note.
President Barack Obama's efforts to persuade the U.S. Congress to back his plan to attack Syria met with scepticism on Monday from lawmakers in his own Democratic Party who worried the United States would be dragged into a new Middle East conflict.
While Obama faced obstacles at home, key U.S. ally France said it had evidence showing that President Bashar al-Assad's government had ordered chemical attacks.
The French government released a nine-page intelligence document that listed five points that suggested Assad's fighters were behind the "massive and coordinated" Aug. 21 attack.
The lack of broad-based support in the West, though, may mean any attack against Assad's government could be short, limited, and unlikely to drag Syria's neighbours - who are major oil exporters - into the conflict.
"That means the upside potential for oil from a military strike is very limited. We may see prices spurt, but they will come back lower," Hasegawa of Newedge Japan said.
Brent is expected to end its rebound in a resistance zone of $114.77-$115.38, and then drop towards a support of $112.48, while U.S. oil is expected to retest a support of $104.23, according to Reuters technical analyst Wang Tao.
(Editing by Muralikumar Anantharaman and Tom Hogue)