UPDATE 8-U.S. oil hits 2014 high as widespread cold lifts heating demand

* U.S. unemployment rate falls in January to 6.6 percent

* Tighter North Sea supplies support Brent

* Coming up: CFTC COT report at 3:30 p.m. EST

(Rewrites throughout, updates prices)

NEW YORK, Feb 7 (Reuters) - Oil rose by more than $1 to one-month highs on Friday, fueled by a sharp rally in gasoline and heating oil as supplies tightened and refiners started to shut down plants for maintenance.

The expectation for tight diesel and heating oil supplies sent oil prices soaring as persistently cold weather across the United States continued to eat into heating fuel stocks.

Spiking natural gas prices in the U.S. Northeast have prompted utilities to turn to fuel oil for electricity generation in the region.

At the same time, European refiners cut processing runs, meaning less product is being made, while Britain's biggest oilfield, Buzzard, will undergo a total nine weeks of maintenance in 2014, rather than the two weeks traders had expected.

"At the end of the day this has been an extraordinary winter. The cold weather is going to continue to support heating oil demand," said Oliver Sloup, director of managed futures at iitrader.com in Chicago.

Brent was also supported by evidence that North Sea crude supply could be lower than expected in the next few months.

U.S. gasoline futures were up nearly 2 percent by mid-afternoon.

A stronger U.S. equities market and weaker U.S. dollar also supported prices.

Brent crude oil futures were trading $1.66 higher at $108.87 at 1:29 p.m. EST (1829 GMT), the highest point since Jan. 2. The contract breached the 200-day moving average of $107.89 for the first time in five sessions.

U.S. crude was up $1.32 to $99.16 a barrel, its highest point since Dec. 31, when it rose above $100 per barrel.

Brent's premium to the U.S. benchmark <CL-LCO1=R> widened back to near $10 a barrel after narrowing to $7.94 on Wednesday, the tightest since Oct. 10.

U.S. heating oil futures were trading 1.6 percent higher at $3.0428 per gallon. U.S. gasoline futures were up 1.8 percent at $2.7312.

The U.S. unemployment rate hit a new five-year low of 6.6 percent in January, down from 6.7 percent in December, the Labor Department said. U.S. nonfarm payrolls rose by 113,000, a lower-than-expected gain that initially forced oil prices lower.

Any gains in U.S. crude that would have been capped as refiners enter maintenance season were offset by the need for refiners to make heating and transportation fuels.

Citgo Petroleum Corp began a shutdown of both plants at its refinery in Corpus Christi, Texas, on Wednesday and Motiva Enterprises LLC said it began maintenance at its 235,000 barrel-per-day refinery in Convent, Louisiana, on Thursday.

The market was keeping a wary eye on Saturday's talks between Iran and the United Nations' International Atomic Energy Agency in Tehran.

The U.N. nuclear watchdog hopes to persuade the Islamic state to start addressing long-held suspicions it has worked on designing a nuclear bomb.

Tough international sanctions over the past two years have cut Iran's oil exports in half.

(Additional reporting by Christopher Johnson, Simon Falush and Ron Bousso in London and Jacob Gronholt-Pedersen in Singapore; Editing by William Hardy, Dale Hudson, Chris Reese and Peter Galloway)