UPDATE 7-Crude oil up but gains capped by worries about Fed
* U.S. Senate committee votes in favor of military strike
* ISM services index rose to highest level in 8 years
* U.S. jobless claims fall to near five-year low
* U.S. crude stocks fall more than expected -API
* Coming up: U.S. EIA crude stocks data; 1500 GMT
(Updates prices, adds EIA data)
NEW YORK, Sept 5 (Reuters) - Oil futures rose on Thursday, but gains by concerns that strong U.S. economic data could move the Federal Reserve closer to unwinding its massive stimulus program that has boosted commodities prices.
Brent was higher early on the session as investors worried that supply disruptions could persist in the Middle East, after U.S. lawmakers supported a military strike on Syria. Brent and U.S. crude gave back some gains after strong U.S. economic data on the service sector and employment suggested that the world's biggest economy could be strong enough to withstand a winding down of stimulus by the Federal Reserve.
"The economic data that came out at 10 a.m. was so positive that it makes the argument for tapering" of Fed stimulus, said John Kilduff, partner at Again Capital LLC in New York, who noted gold prices had dropped as well on the service sector news.
"It's a generalized commodities selloff because we anticipate the loss of monetary support."
The Institute for Supply Management reported that the pace of growth in the U.S. services sector accelerated in August to its fastest pace in almost eight years. The U.S. Labor Department said private employers added 176,000 jobs in August, while new jobless claims last week fell to a near five-year low.
U.S. crude prices also drew support from separate data showing U.S. crude stocks fell by 1.84 million barrels, including a 1.83 million barrel draw at Cushing, Oklahoma, delivery point for U.S. crude futures.
Brent crude rose 34 cents to $115.25 a barrel by 11:23 a.m. EDT (1523 GMT) after an earlier high of $115.55.
U.S. oil gained $1.16 to $108.39 a barrel.
Last week, Brent rallied to a six-month high and U.S. crude rallied to a two-year high. Both contracts have retreated slightly as investors grew less nervous that a possible U.S.-led military strike on Syria would lead to wider regional strife.
The Senate Foreign Relations Committee voted in favor of a resolution that sets a 60-day limit on any engagement in Syria, with a possible 30-day extension, and bars the use of U.S. troops for ground combat.
While Syria is not a big oil producer, markets are already struggling to cope with the loss of supplies from a region that pumps a third of the world's crude. Outages in the Middle East and Africa have surpassed 3 million barrels per day, or about 3.5 percent of global demand.
Libya's oil exports have shrunk to just over 10 percent of capacity from three out of a possible nine ports as armed groups have tightened their grip on oil facilities.
(Additional reporting by Lin Noueihed in London, Manash Goswami in Singapore; editing by Jim Marshall and David Gregorio)