* Oil falls below $100

  * Futures up: S& P 0.8 pt, Dow 7 pts, Nasdaq 6.5 pts (Recasts lead, updates prices)

  By Angela Moon

  NEW YORK, Feb 24 (Reuters) - U.S. stock index futures cut losses and turned positive shortly before the market open on Thursday as oil prices fell below $100 a barrel.

  S& P 500 index futures, off as much as 8 points earlier in the morning, added 1.3 points as U.S. crude oil futures eased to $99.63 a barrel. Prices had hit $101 on mounting fears the unrest in Libya could spread to other major producers in the region, including top exporter Saudi Arabia.

  " Trading volume on Wall Street has been solid for the past two days, a signal that we have entered a correction and motivated sellers are taking profits," said Tim Ghriskey, chief investment officer of Solaris Asset Management in Bedford Hills, New York.

  " But this is a correction that is driven by the situation in the Middle East and North Africa, so if the problem goes away we may be able to turn course."

  S& P 500 futures rose 0.8 point and were in line with fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures gained 7 points, and Nasdaq 100 futures added 6.5 points.