* FTSE down 0.2 percent, Libya fighting prompts reverse
* Energy shares weaken as oil rises
* Travel firms hit, IAG and Carnival fall
LONDON, March 4 (Reuters) - Britain's top share index drifted lower on Friday, as renewed fighting in Libya and concerns of contagion prompted investors to consolidate sharp gains made in the previous session, ahead of the weekend.
Heavily armed rebels clashed with forces loyal to Muammar Gaddafi on Friday on the outskirts of the Ras Lanuf oil terminal as the head of Libya's rebel council vowed "victory or death".
Traders said unconfirmed reports of unrest in Saudi Arabia and Bahrain also spooked the market, with oil jumping over 1.5 percent to $103.50 a barrel.
The FTSE 100 fell 14.70 points, or 0.2 percent, to 5,990.39, fading from a session high of 6,052.08 but having jumped 1.5 percent on Thursday.
"We've had a decent tick up. Only two days ago we were 100 points lower. Wall Street had a decent day yesterday; I think its probably a natural reaction," said Rupert Armitage, director at Shore Capital.
"In these days of volatility, though, it's not exactly a crash."
Energy stocks weakened from intra-day highs, while banks fell, having been the strongest gainers on Thursday following results from Standard Chartered.
Travel firms were among the worst hit, hit by the rising price of oil and customers cancelling trips to the regions affected.
International Consolidated Airlines and Carnival fell 2.9 and 3 percent, respectively.
The world's largest advertising firm WPP shed 2.6 percent, the top faller on the FTSE 100, with analysts citing disappointment its strong results lagged those of French rival Publicis.
U.S. DATA
Non-farm payroll data from the world's largest economy failed to fuel appetite for risk among investors, despite hiring by U.S. employers hitting a nine-month high in February and the jobless rate slipping to a nearly two-year low.
"Even though the employment numbers were better than expected ... we really need to be seeing numbers of plus 200,000 in order to appease fears about the U.S. jobs market," a London-based trader said.
Meanwhile, new orders received by U.S. factories leaped 3.1 percent in January, the biggest increase since September 2006.
British outsourcing group Serco rose 4.6 percent, with traders citing an upgrade from Bank of America Merrill Lynch following results on Wednesday.
Standard Life headed a firm life insurance sector, the stock adding 2.9 percent after Investec Securities increased its target price and earnings estimates ahead of the company's full-year 2010 results due on Thursday, March 10.
Peer Aviva rose 1.4 percent, as both Credit Suisse and Nomura raised their price targets following forecast-busting full-year results on Thursday.
Technical analysis of the FTSE 100 index was cautious.
"The index is swinging up and down between 5,850 support and 6,052 resistance thresholds. The immediate trend is up, but the momentum is weak," said Nicholas Suffet, technical analyst at Paris-based Trading Central.
"The lack of momentum allows (us) to expect a continuation of the consolidation move in the days ahead," Suffett added. (Editing by Will Waterman)