* Weak demand outlook to pressure oil, supply risks remain
* Investors cautious ahead of this week's U.S. jobs data
* Coming up: API oil data 4:30 p.m. EDT Tuesday
(Recasts, updates prices, market activity; changes byline and dateline, pvs LONDON)
By Robert Gibbons
NEW YORK, Oct 2 (Reuters) - Oil prices eased in choppy trading on Tuesday as a weak outlook for economic growth and petroleum demand kept crude futures hemmed, even as the risk of potential supply disruptions limited losses.
Global economic activity has slowed this year, curbing fuel demand growth in Asia, Europe and the United States. Investors remain wary, however, of unplanned disruption to supplies, especially from the Middle East that could force prices higher.
Supportive to oil prices, the euro rose for a second straight session on growing expectations the euro zone's fourth-largest economy Spain is ready to seek a bailout. The dollar index weakened.
Bets that Spain will soon ask the euro zone for support initially boosted equities on Wall Street, before the S&P 500
Investors remained cautious ahead of this week's release of gauges of U.S. employment. The reports include payroll processor ADP's measure of private sector hiring, followed by government data on U.S. initial jobless claims and, on Friday, the closely watched September nonfarm payrolls.
Brent November crude fell 38 cents to $111.81 a barrel by 11:08 a.m. EDT (1508 GMT).
A choppy price trajectory from $111.70 to $112..45 took Brent either side of the 50-day moving average of $112.07 and the 200-day moving average of $112.09, both technical levels closely watched by traders.
U.S. November crude fell 28 cents to $92.20, after reaching $92.94.
Oil prices received support on Monday from data showing U.S. manufacturing unexpectedly grew last month for the first time since May. Offsetting the U.S. data were reports showing euro zone factories suffered their worst quarter since early 2009 and China lost steam .
"Economic data is bearish for oil and the immediate risk for prices is to the downside," said Tamas Varga, oil analyst at brokers PVM Oil Associates in London.
"But geopolitics is supporting the market. It may be very unlikely, but investors are still worried there could be a war in the Middle East. And, as long as stories about Iranian nuclear operations keep coming, those worries are not going to go away."
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(Additional reporting by Christopher Johnson and Alice Baghdjian in London and Luke Pachymuthu and Manolo Serapio Jr in Singapore; editing by Andrew Hay)
Keywords: MARKETS OIL/