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UPDATE 8-U.S. oil lifted by solid jobs report

* U.S. adds 217,00 jobs in May

* Euro zone stimulus may lift region's economy, oil demand

* Price gains curbed by easing Ukraine tension

(Updates prices to settlement, adds CFTC data)

NEW YORK, June 6 (Reuters) - U.S. crude oil futures inched higher on Friday after a solid jobs report in the United States pointed to economic strength and growing oil demand in the world's largest oil consumer.

A U.S. Labor Department report showed a fourth straight month of job gains in May, bringing U.S. employment back to pre-recession levels and confirming that the economy has snapped back from a winter lull.

"There was a little bit of a rally after the report came out and the market was stronger this morning. The market is now finding a balance where it's comfortable," said Joseph Posillico, senior vice president of energy derivatives at Jefferies Bache in New York.

U.S. crude gained 18 cents to settle at $102.66 a barrel after hitting a high of $103.07 shortly after the release of the jobs report.

Brent crude oil futures, however, lost 18 cents to settle at $108.61 a barrel.

Brent had gained on Thursday on prospects for oil demand growth in Europe after the European Central Bank (ECB) launched a series of measures to pump money into the sluggish euro zone economy.

"Yesterday the focus was on the ECB," said Phil Flynn, an analyst at the Price Futures Group in Chicago. "Today the focus is back on the U.S."

The spread between the two benchmarks <CL-LCO1=R> thinned to $5.95 on Friday, higher than the previous day's two-month low of $5.61, but narrower than Thursday's $6.31 close.

Brent's slight fall on Friday came as tensions were seen as easing in Ukraine. The dispute with Russia has bolstered Brent prices over concerns that it could dent Russia's oil exports.

"The tension in Russia and Ukraine has eased somewhat post the Ukrainian elections," said Mark Keenan, head of commodities research for Asia at Societe Generale.

Russian President Vladimir Putin and Ukrainian President-elect Petro Poroshenko held their first face-to-face talks on Friday on the sidelines of a D-Day event in France and discussed a possible ceasefire agreement in Ukraine, a French official said.

They will restart talks over the weekend to try to resolve a dispute over gas prices, and Kiev is considering paying off debts for last year's Russian supplies, a government source in Kiev said.

Money managers cut their net long U.S. crude futures and options positions in New York and London by 10,894 contracts to 382,260 in the week to June 3, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.

(Additional reporting by Peg Mackey in London, Florence Tan in Singapore; Editing by David Evans, Bernadette Baum and Peter Galloway)