Brent slips below $108 as dollar rises; demand concerns weigh

* Brent dips as low as $107.20; U.S. oil slumps to $84.85

* U.S. oil seen in $80-$90 range on demand uncertainty -analyst

* Brent's rebound is approaching an end -technicals

By Manash Goswami

SINGAPORE, Aug 12 (Reuters) - Brent slipped below $108 a barrel on Friday, reversing direction after two straight days of gains, as the dollar strengthened and demand concerns from industrialised nations weighed on prices.

The strong U.S. jobs report, which helped oil gain as much as 3 percent in the previous session, is not enough to keep pushing prices higher, and wide swings will continue until the market sees a clear demand trend emerging, analysts said.

The U.S. dollar gained further after posting its best day ever against the Swiss franc on Thursday.

"The market needs strong indicators to be convinced about demand for oil and for prices to go up steadily towards $100," said Ken Hasegawa, a commodity derivatives manager at Japan's Newedge brokerage. "Till then, we are going to see big volatility, and swings of up to $2 to $3 in a day."

Brent crude for September fell as low as $107.34 and traded 52 cents lower at $107.50 by 0314 GMT. The benchmark is poised to gain 1 percent on the week, reversing the previous week's slump of 9.3 percent.

U.S. oil slipped as low as $84.85 a barrel and traded 77 cents down at $84.95. In its third consecutive week of decline, the contract is set to fall 2.6 percent on the week versus a fall of 9 percent last week.

Crude rose on Thursday after a report from the Labor Department showed the number of Americans claiming new jobless benefits fell by 7,000 last week to a seasonally adjusted 395,000, the lowest since early April. The report offered hope for an economy battered for days by a credit rating downgrade and falling share prices.

Brent settled $1.34 higher at $108.02 a barrel, having swung between $104.43 and $108.08, adding to the 4 percent leap on Wednesday. U.S. crude settled up 3.41 percent at $85.72 a barrel, bouncing from the day's low of $81.03. On Wednesday, it rose 4.5 percent.

Oil trading volumes were also strong for a sixth straight day as traders piled into riskier assets such as commodities and equities. Gold dropped 1 percent, extending losses from a fall of 1.6 percent in the previous session.

The rebound in Brent is approaching its end, as indicated by a rising wedge, while U.S. oil is expected to end the current rebound below $86.79 per barrel, as a strong resistance zone of $85.23-$86.79 would force it to drop, Reuters technical analyst Wang Tao said.

"The jobs report is just one indicator, and everyday we are getting some indicators that are good and some that are bad," Hasegawa said. "The market needs strong signs from both the U.S. and Europe."

The safe-haven Swiss franc nursed heavy losses in Asia on Friday, having posted record one-day falls against the dollar and euro after the Swiss National Bank threatened to step up its fight to curb the franc's strength. (Reporting by Manash Goswami; Editing by Clarence Fernandez)