UPDATE 7-Oil rises about 1% on fall in U.S. unemployment rate

* Brent and U.S. crude down more than 5% for week
* U.S. job growth increased moderately in September
* Supply concerns fade with restored Saudi output
* Coming up: Baker Hughes rig count data at 1 p.m. ET

(New throughout, updates prices, market activity and comments;
new byline, changes dateline, previous LONDON)
By Stephanie Kelly
NEW YORK, Oct 4 (Reuters) - Oil prices rose on Friday as an
increase in U.S. jobs eased some financial market concerns that
a slowing global economy could dent oil demand, but crude
remained down more than 5% for the week, on track for a second
consecutive weekly decline.
Brent crude LCOc1 futures rose 71 cents, or 1.2%, to
$58.42 a barrel by 11:30 a.m. EDT (1530 GMT). West Texas
Intermediate (WTI) crude CLc1 futures rose 36 cents, or 0.7%,
to $52.81 a barrel.
Still, both benchmarks were on track to fall about 5.6% for
the week, their biggest weekly losses since July.
"The oil market is fixated on macro-economic issues and not
necessarily current supply or demand," said Phil Flynn, an
analyst with Price Futures Group in Chicago.
U.S. job growth increased moderately in September, with the
unemployment rate dropping to near a 50-year low of 3.5%,
according to a U.S. Labor Department report.
The report, however, came on the heels of a string of weak
economic reports, including a plunge in manufacturing activity
to more than a 10-year low in September and a sharp slowdown in
services industry growth to levels last seen in 2016.
"The crisis in the manufacturing sector now appears to be
spilling over to the previously robust services sector. This is
not good news for oil demand. After all, this also reduces the
demand for transport," said Carsten Fritsch, senior commodity
analyst at Commerzbank.
On the supply side, Saudi Arabia's energy minister, Prince
Abdulaziz bin Salman, said on Thursday the world's top crude oil
exporter had fully restored oil output after attacks on its
facilities last month knocked out more than 5% of global oil
supply.
"That Saudi restored its production back to original
capacity sooner than expected means investors had to price out
raised supply risks at a faster clip than would have otherwise
been the case," said Fawad Razaqzada, market analyst at futures
brokerage Forex.com.
Razaqzada said weak economic data, particularly from the
U.S. manufacturing sector, also raised fears for oil demand,
"but now that some of these factors have been priced in, oil
prices may fall less sharply going forward or at best start to
form a base."
Investors are also watching for further developments on
tensions between the United States and Iran.
France said Iran and the United States have one month to get
to the negotiating table, suggesting that Tehran's plan to
increase its nuclear activities in November would spark renewed
tension in the region. In an indication for future production, U.S. rig count data
is due to be released at 1 p.m. EDT on Friday.

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U.S. unemployment jpg https://tmsnrt.rs/2QkBQmY
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