NYMEX-Crude ends lower on stronger dollar

* Dollar extends gains, global equities lower

* JP Morgan ups Q4 oil price forecast to $65/bbl

NEW YORK, June 8 (Reuters) - U.S. crude oil futures settled
lower on Monday, extending Friday's retreat as the dollar
strengthened, which made commodities such as oil less
attractive to investors.

Traders also raised worries over demand as Wall Street was
weaker on profit and interest rate worries. Losses were limited
as traders weighed forecasts ahead of weekly inventory data
that called for lower crude inventories.

"Crude oil prices backed further away from $70 as waning
upside momentum makes cashing out length look like the prudent
choice," said John Kilduff, senior vice president at MF Global
in New York.

On Friday, crude futures fell from a seven-month high above
$70 on mixed sentiment about the latest government jobs report,
which showed that, while job losses were slowing, the
unemployment rate hit the highest in almost 26 years.

The dollar extended gains as Treasury yields continued to
rise following last week's stronger-than-expected U.S. jobs
data. [USD/]

JP Morgan (JPM.N) raised its forecast for fourth-quarter
2009 U.S. oil prices to $65 a barrel versus above $55 made in
May, on expectations of economic recovery and seasonal factors.
For the end of next year, JP Morgan also revised its forecast
to $70 versus $60 in its last monthly energy report.

PRICES

* On the New York Mercantile Exchange, July crude CLN9
settled down 35 cents, or 0.51 percent, at $68.09 a barrel,
trading from $66.78 to $68.95. On Friday, it hit an intraday
high of $70.32, the highest front-month intraday price since
$70.46 was struck on Nov. 5.

* In London, July Brent crude LCON9 ended down 46 cents,
or 0.67 percent, at $67.88 a barrel, trading from $66.88 to
$68.79. On Friday, it hit $69.91, the highest intraday price
since Oct. 21's $73.29.

* NYMEX July RBOB RBN9 ended down 1.86 cents, or 0.95
percent, at $1.9360 a gallon, trading $1.9211 to $1.9629. On
Friday, it hit a high of $1.9945, the highest intraday price
since Oct. 14's $1.9990.

* NYMEX July heating oil HON9 settled down 0.22 cent, or
0.12 percent, at $1.7679 a gallon, trading from $1.74 to
$1.7892. On Friday it hit a high of $1.8139, the highest
intraday price since Nov. 24's $1.8302.

* The July/July RBOB crack spread <0#RB-CL=R> ended at
$13.22, down from $13.65 on Friday. The July/July heating oil
crack spread <0#CL-HO=R> ended at $6.16 up from $5.90 on
Friday.

* The spread between the current front month and the
five-year forward crude contract CLc61 ended at $16.70,
widening from $15.95 on Friday. The July 2014 contract settled
at $84.79 up 40 cents, or 0.47 percent.

TECHNICALS

NYMEX crude 10-day/20-day moving average: $65.99/$62.33

Technical support/resistance:

NYMEX crude: $65.75/$70.32

NYMEX heating oil: $1.7255/$1.8410

NYMEX RBOB: $1.8790/$1.9815

For a report on technicals click [ID:nL84193]

MARKET NEWS

* U.S. stocks fell as McDonalds Corp (MCD.N) warned that
second-quarter profits could be hurt by currency swings and
investors worried that rising interest rates may hamper
recovery. [.N]

* World stocks declined as yields on 10-year U.S.
Treasuries hit a seven-month high, raising speculation the
Federal Reserve may have to tighten interest rates sooner than
anticipated, and the dollar rose on the same speculation.
[MKTS/GLOB]

* The International Energy Agency expects OECD oil stocks
to fall to 57 days supply by year-end from the current 63 days,
if OPEC's production continues at current levels, along with
the recovery in demand. [ID:NSP493881]

* U.S. crude oil inventories likely fell 400,000 barrels
while distillate and gasoline supplies rose, a preliminary
Reuters poll ahead of weekly data showed Monday. [EIA/S]

* Tropical activity associated with showers and
thunderstorms is developing over the southwestern Caribbean
Sea, but surface trough remained unfavorable for development at
this time, the National Hurricane Center said. [ID:nN08316043]
(Reporting by Gene Ramos and Eileen Moustakis; Editing by Lisa
Shumaker)