* Brent crude heads for weekly gain on dip-buying

* Dollar rises near 10-month high

* Iraq-Turkey oil pipeline stops again - source

* Coming up: Univ of Michigan consumer sentiment data

(Updates prices, adds detail)

By Alex Lawler

LONDON, May 17 (Reuters) - Oil climbed towards $105 a barrel on Friday, rebounding from an earlier decline and heading for a small weekly gain, although concern about the strength of demand growth limited the rise.

A rally in refined products such as gasoil LGOc1 , a bomb attack closing an Iraqi export pipeline and steadier European equities lent support to crude, countering the U.S. dollar's rise close to a 10-month high. USD/ FRX/

Brent crude LCOc1 was up 82 cents at $104.60 a barrel by 1338 GMT, and was on course to rise about 0.7 percent this week. U.S. oil CLc1 was up 77 cents at $95.93.

"Equities are still well supported by the actions of the central banks. Once you get closer to $100 on Brent, there is a little bit more demand," said Olivier Jakob, oil consultant at Petromatrix in Zug, Switzerland.

More investors who sold long positions could be heading back into Brent, which hit a 2013 low of $96.75 on April 18, dealers said. Its peak for 2013 so far is $119.17, reached on Feb. 8.

"The funds that got rid of their length are probably coming back in on the long side," said Christopher Bellew, broker at Jefferies Bache. "Prices have probably hit their nadir and Brent is in a gradual upward move towards $110."

In another possible boost to oil market sentiment, Europe's car market in April ended a streak of 18 months of falling sales. Still, one-off factors suggested a sustained recovery will be harder to achieve. ID:nL6N0DY1DW

And, oil flows from Iraq to Ceyhan in Turkey were halted on Friday, a shipping source said. The pipeline normally pumps about 300,000 barrels per day, although output so far in May has been lower, say trade sources.

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For a 24-hr analysis on Brent:

http://graphics.thomsonreuters.com/AS/WT1/20131705091919.jpg

Commodities performance in 2013:

http://link.reuters.com/reb25t

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Oil fell earlier as the dollar weighed. A strong dollar makes dollar-denominated commodities more expensive for other currency holders and tends to weigh on oil and other risk assets.

Some analysts were focusing on the potential for more price weakness ahead, citing the view that oil supply is still ample.

"It is questionable whether oil prices will be able to defy a stronger U.S. dollar for any length of time in view of the oversupplied market," said Carsten Fritsch, analyst at Commerzbank in Frankfurt.

Doubts about the strength of oil demand persist. On Thursday, data showed the U.S. economy showed signs of slowing in the second quarter, as well as a spike in new claims for jobless benefits last week.

Data expected on Friday includes the Thomson Reuters/University of Michigan Surveys of Consumers preliminary May consumer sentiment index at 9:55 a.m. (1355 GMT).

(Editing by Alison Birrane)

((alex.lawler@thomsonreuters.com)(+44 207 542 4087)(Reuters Messaging: alex.lawler.reuters.com@reuters.net))

Keywords: MARKETS OIL/