UPDATE 2-Oil slips ahead of U.S. jobs data, Hurricane Earl

                                
 * Tropical storm Gaston weakens to depression in
mid-Atlantic
                                
 * Technicals: oil to cap rebound at $76.87 [ID:nSGE682007]
                                
 * Coming Up: U.S. nonfarm payrolls for August; 1230 GMT
 (Updates prices)
                                
 By Alejandro Barbajosa
                                
 SINGAPORE, Sept 3 (Reuters) - Oil fell on Friday for the
first day in three as traders awaited U.S. monthly jobs data,
while Hurricane Earl neared the country's east coast, fuelling
concerns of disruptions to refineries and demand during the
Labor Day long weekend.
                                
 U.S. crude for October <CLc1> dropped 39 cents to $74.63 a
barrel by 0610 GMT, on track for its third weekly drop in four
weeks, while ICE Brent <LCOc1> declined 42 cents to $76.51.
                                
 Prices on Thursday settled above $75 for the first time
this week, after positive U.S. data on weekly jobs and pending
sales of previously owned homes eased concerns the world
economy would lapse back into recession. A day earlier, prices
rose on strong U.S. and Chinese manufacturing data.
                                
 "The economic data this week largely assuaged concerns that
manufacturing is leading the world into a double-dip
recession," JP Morgan analysts headed by Lawrence Eagles said.
                                
 "The conveyor belt of tropical storm development is in full
swing as we enter the peak months for hurricane activity.
Hurricane risks aside, the outlook for the oil market in the
coming months looks less supportive," JP Morgan said.
                                
 U.S. nonfarm payrolls probably fell for a third straight
month in August, a Reuters survey showed, ahead of a monthly
report due later on Friday. [ID:nN31235915]
                                
 Atlantic storms in the past few weeks have veered north,
staying away from oil and gas production and refining
infrastructure in the Gulf of Mexico.
                                
 Still, Hurricane Earl could affect 1.1 million barrels per
day of U.S. operable refinery capacity on the Atlantic coast,
or about 7 percent of the nation's total, the U.S. Energy
Information Administration said on Thursday.
                                
 "Although Hurricane Earl presents a potential threat to
petroleum refineries and seaports, current relatively high
inventory levels for most petroleum products should lessen
concerns about possible supply outages," the EIA said.
                                
 Total U.S. petroleum inventories are at their highest since
weekly records began in 1990. In a market where fuel supplies
remain ample, a disruption to refineries might prove to be
bearish for oil prices as less crude would be processed.
                                
 Earl may also curb demand for motor fuel from holidaymakers
who stay away from the roads as the U.S. driving season comes
to a close this weekend.
                                
 Tropical Depression Gaston has weakened further and is now
classified as a remnant low-pressure area in the central
Atlantic Ocean, the U.S. National Hurricane Center said in an
advisory on Thursday. [ID:nN02218351]
                                
 An oil and gas platform operated by Mariner Energy <ME.N>
burst into flames in the Gulf of Mexico on Thursday, but the
crew of 13 escaped and there were no signs of an oil spill, the
U.S. Coast Guard said. [ID:nN02220827]
                                
 Rising Asian stock markets on Friday were providing some
support for oil prices. Japan's Nikkei edged up 0.6 percent,
buoyed by tech and exporter shares after U.S. data showed an
improvement in housing and the job market. [.T]
 (Editing by Clarence Fernandez)