UPDATE 5-Oil rises towards $107 on Libya doubts, U.S. jobs

* Libya sees "good intentions" in oil port talks

* Investors doubt Libyan exports will return quickly

* U.S. maintains solid job growth as winter retreats

* Coming up: ECRI Weekly Leading Index; 1430 GMT

(Updates detail, payrolls data, prices; paragraphs 1, 6-8, 10)

LONDON, April 4 (Reuters) - Brent crude oil rose towards $107 a barrel on Friday as investors cast doubt on reports Libya's oil ports were about to reopen, and anticipated higher U.S. fuel demand as data showed strong jobs growth in the world's biggest economy.

Expectations had been building that an eight-month blockage of Libya's oil export ports would end after rebels and the government said they were close to an agreement.

The Libyan government said it had seen evidence of "good intentions" at indirect talks with eastern rebels which could lead to renewed exports.

But previous reports of ports reopening have proven false and investors suspect there will again be no breakthrough.

"In the oil market it is Libya that is pulling the strings," said David Hufton, managing director of London brokerage PVM Oil Associates. "High hopes of an imminent settlement with rebels in the east of the country have been punctured."

May Brent crude was up 60 cents at $106.75 a barrel by 1300 GMT. U.S. crude for May gained 96 cents to $101.25 a barrel. Front-month U.S. crude was set to post its first weekly loss in three weeks.

Oil had an additional boost from U.S. non-farm payrolls figures showing 192,000 new jobs in March, evidence the U.S. economy is accelerating after a bitterly cold winter.

Economists polled by Reuters had expected U.S. employment to increase 200,000 last month.

The restart of Libya's eastern oil ports could release about 600,000 barrels per day (bpd) of crude, bumping up the OPEC producer's output from around 150,000 bpd, but still far from the 1.4 million bpd it produced last July.

Investors remained cautious after a breakdown in agreements between the Libyan government and rebels earlier this year.

"The previous expectation of Libyan oil supply returning quickly and comprehensively to the market has clearly given way to a more realistic appraisal of the situation," said Carsten Fritsch, senior oil analyst at Commerzbank in Frankfurt.

"It first remains to be seen whether the oil terminals in the east of Libya do in fact open in the next few days."

"Even if this does happen, however, it is by no means clear whether the previous export volume of 600,000 bpd can be quickly regained," he added. "It takes time for production to be ramped up and for pipelines to be filled."

(Additional reporting by Florence Tan and Manolo Serapio Jr in Singapore; editing by William Hardy and David Evans)