UPDATE 5-Oil slips below $106 as growth concerns weigh

* U.S. economy loses steam as manufacturing slows in January

* North Sea buzzard field restarted, Libya loading resumes

* Cushing oil stocks expected to fall by over 1 mln barrels -sources

(Updates prices, adds details)

LONDON, Feb 4 (Reuters) - Oil slipped below $106 a barrel on Tuesday on concerns that weak data from the United States and China, the world's largest consumers of oil, could slow global growth, although supply problems offered some support.

A brief production glitch at the North Sea Buzzard oilfield and a dip in Libyan supplies due to bad weather helped underpin Brent crude oil, which has been hit in recent sessions by a rout in emerging markets and stocks.

Brent, the international benchmark, fell 35 cents to $105.69 a barrel by 1337 GMT after two sessions of losses.

U.S. crude futures, known as WTI, were up 28 cents to $96.71 per barrel, bouncing after their largest daily percentage loss in nearly a month as they tumbled with U.S. equities.

"The pressure is still on the downside for Brent. There is still concern about growth in emerging markets. The numbers coming out of the U.S. yesterday caused concern," said Michael Hewson, analyst at CMC Markets.

Signs of slowing economic growth in the United States and China raised concerns about fuel demand, while forecasts of excess supply this year weighed on oil prices.

The U.S. economy has lost steam as manufacturing activity slowed sharply in January on the back of the biggest drop in new orders in 33 years, while construction spending barely rose in December. At the same time factory activity reports have raised concerns about growth in China.

"On Friday and Monday, we had steep falls linked to weak stock markets but it is significant that Brent has not continued to go down the same way and remains in yesterday's range," Christopher Bellew, a broker at Jefferies Bache said.

"That's because for oil, unlike stocks, there is also concern about supply in the Middle East and elsewhere and that underpins it..."


Oil gained support from tighter supply in the North Sea after an output glitch at Buzzard, the largest field that contributes to Forties. The field has restarted and will return to normal levels in days, its operator said.

Bad weather also reduced output from Libya on Monday but the National Oil Corporation said loading had restarted and production would return to normal on Tuesday.

The spread between Brent and WTI, hotly traded last year, was hovering around $9 on Tuesday.

It fell to $8.06 on Monday, its narrowest since Oct. 18, after news that oil stocks at the U.S. storage hub in Cushing, Oklahoma, were expected to have dropped by more than one million barrels for the first time in five months.

WTI has traded at a steep discount to Brent - as wide as $19 as recently as November - due partly to bottlenecks at Cushing over the last three years.

But the spread has narrowed from $15 at the start of this year as traders anticipated a new pipeline coming online would relieve the glut at Cushing by draining oil to U.S. Gulf Coast refineries.

(Additional reporting by Florence Tan; editing by Jason Neely and Keiron Henderson)