NEW YORK, Nov 6 (Reuters) - U.S. crude futures were down

more than 3 percent near midday on Thursday after government

data showing the unemployment rate at its highest in 26-1/2

years spurred further worries about petroleum demand.

The report extended losses from Thursday, when oil futures

fell in a delayed reaction to midweek's government inventory

data showing U.S. total oil product demand over the past four

weeks was down 4.5 percent from a year ago.

The oil markets did not heed signals from Wall Street,

which, despite the unemployment data, rose as the latest

jobless report showed monthly payroll losses had slowed, even

as unemployment rose to 10.2 percent, the highest since April

1983.

'If the crude oil market continues to underperform relative

to the equity markets as it has of late, we think it will call

greater attention to the direct fundamentals for the petroleum

markets, which remain weak,' said Tim Evans, energy analyst at

Citi Futures Perspective in New York.

'Surplus stocks, soft demand, rising OPEC production and an

ongoing projected supply/demand surplus all point to the

potential for a substantial downward price correction from

current levels, in our view,' Evans added.

U.S. employers cut 190,000 jobs in October, the Labor

Department said, more than the 175,000 markets had expected,

but fewer than the 219,000 lost in September.

The dollar rose against the euro and a basket of major

currencies as the jobs report lifted safe-haven demand for the

greenback.

U.S. oil producers and refiners said operations were normal

in and around the Gulf of Mexico early Friday as they monitored

weather systems that could threaten offshore platforms and

coastal facilities in the next several days.

PRICES

* On the New York Mercantile Exchange, crude for December

delivery was down $2.65, or 3.33 percent, at $76.97 a

barrel, having fallen to a session low of $76.91 earlier. The

session high was $80.34.

* In London, December Brent crude was down $2.51,

or 3.22 percent, at $75.48 a barrel, trading from $75.40 to

$78.81.

* NYMEX December RBOB slumped 7.42 cents, or 3.73

percent, to $1.9135 a gallon, trading from $1.9116 to $2.0005.

* NYMEX December heating oil skidded 7.33 cents, or

3.56 percent, to $1.9843 a gallon, trading from $1.9821 to

$2.0739.

* The December/December RBOB crack spread was

at $3.40, after ending at $3.86 on Thursday. The

December/December heating oil crack spread was at

$6.37, after ending at $6.80 on Thursday.

* The spread between the current front month and the

five-year forward crude contract was at $15.02, based

on the December 2014 contract Thursday settlement at $91.99.

The spread ended Thursday at $12.37.

TECHNICALS

NYMEX crude 10-day/20-day moving average: $78.98/$78.52

Technical support/resistance:

NYMEX crude: $78.16/$82.00

NYMEX heating oil: $1.9650/$2.10

NYMEX RBOB: $1.9330/$2.00

For a full report on technicals, click on

MARKET NEWS

* U.S. wholesalers continued liquidating their inventories

in September, with stocks falling for the 13th consecutive

month and sales increasing for the fifth straight month,

Commerce Department Data showed on Friday.

* Ida, which weakened to a tropical depression near the

Honduras-Nicaragua border Friday morning, could break into the

Northwest Caribbean on Saturday and reach the Gulf of Mexico

early Monday, the National Hurricane Center said.

* Elsewhere, weather forecaster AccuWeather.com reported

that a yet unnamed system brewing in the southwestern Gulf of

Mexico could deliver disruptive tropical storm conditions.

* For a list of recent refinery and unit shutdowns and

restarts, click.

(Reporting by Gene Ramos and Robert Gibbons)

Keywords: MARKETS ENERGY NYMEX

(gene.ramos@thomsonreuters.com; + 1 646 223 6054; Reuters Messaging: gene.ramos.reuters.com@reuters.net)

COPYRIGHT

Copyright Thomson Reuters 2009. All rights reserved.

The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.