By Barani Krishnan NEW YORK (Reuters) – Oil fell on Friday as the dollar surged on bets of a near-term rate hike from strong U.S. jobs growth, offsetting an early run up in crude prices on worries about Libyan and Iraq supplies. Many U.S. Federal Reserve officials consider that to be full employment, and the central bank could decide on an interest rate hike in June. “That said, the bottom side in oil is still being protected by the situation in Libya and Iraq, and upcoming oil rig data,” Flynn added. Brent reached above $61 and U.S.