* Dollar surges on U.S. job growth, wages increase
* UBS sees upside for oil demand growth in 2018
* Reuters survey shows strong compliance with output cuts
* U.S. output exceeded 10 mln bpd in Nov, a first since 1970 (Updates prices, adds dollar moves)
LONDON, Feb 2 (Reuters) - Oil prices eased on Friday as the dollar surged due strong U.S. jobs and wage numbers, although energy markets were still supported by strong compliance with output cuts by OPEC and rising global demand in 2018.
Brent futures, the global benchmark, were down by $1 at $68.65 a barrel by 1442 GMT. U.S. West Texas Intermediate (WTI) crude was down 55 cents at $65.25 a barrel.
Oil prices fell as the dollar in which it is priced soared , after U.S. jobs growth surged in January and wages rose further, recording their largest annual gain in more than 8-1/2 years.
But crude still has support in the mid-term because of output cuts by the biggest producers and strong demand.
"The OPEC/non-OPEC production and U.S. tight oil have justifiably been a focus this year. Yet demand has quietly underpinned the tightening of the market over the past year," Jon Rigby from UBS said in a note.
Global oil demand rose by 1.6 million bpd, or about 1.5 percent, last year and UBS said it should grow by another 1.3 million this year or even more after the International Monetary Fund raised its global economic growth forecast.
UBS said that in each of the 10 individual years since 1980 when GDP grew by more than 4 percent, oil consumption growth exceeded 1.5 percent in seven of them: "This implies upside risk to our current 2018 demand growth forecast".
On the supply front, production by the Organization of the Petroleum Exporting Countries rose in January from an eight-month low, as higher output from Nigeria and Saudi Arabia offset a further decline in Venezuela.
"It underscores the commitment of the cartel, and their Russian partners, to keep a floor under the oil price," said Greg McKenna, chief market strategist at futures brokerage AxiTrader.
Russia data also showed strong compliance with output cuts in January.
Good compliance is drawing investors' focus away from the rise in U.S. production. U.S. output surpassed 10 million bpd in November for the first time since 1970, the Energy Information Administration said this week.
(Additional reporting by Henning Gloystein and Aaron Sheldrick; Editing by Richard Pullin and Edmund Blair)