NYMEX-Crude back above $78; eyes equities, dollar

* U.S. Oct consumer sentiment weakens - survey

* Dollar rise on safe-haven tack, equities dip

NEW YORK, Oct 16 (Reuters) - U.S. crude futures extended
the day's highs above $78 a barrel in late trading on Friday as
oil traders leaned on broader financial markets for direction,
analysts said.

Earlier, crude futures were down as a stronger dollar kept
oil investors cautious and a report that consumer sentiment had
soured this month revived demand worries.

"The oil markets are still looking for direction from the
financial markets. The dollar has been lower, but is now moving
up while the stock market is seeing some bounce, with the S&P
moving up from the lows," said Gene McGillian, analyst at
Tradition Energy in Stamford, Connecticut.

Heating oil futures were slightly up, clambering from the
day's lows with storms looming in the U.S. Northeast, the top
regional consumer of heating oil in the world.

Two complex coastal storms are expected along the
mid-Atlantic and Northeast coast during the next few days,
according to forecaster DTN Meteorlogix.

Gasoline also recovered from earlier losses and was up
about 1 percent, still supported by Thursday's data showing a
surprise inventory drawdown last week.

Crude futures were down earlier as the dollar was up on
safe-haven buying after Bank of America's (BAC.N) earnings fell
short of expectations and a report showed a drop in consumer
confidence. [USD/]

Wall Street also fell on the disappointing Bank of America
earnings, as well those from General Electric (GE.N), with the
consumer pulse report adding to the gloom. [.N]

U.S. consumer sentiment fell unexpectedly this month on
persistent worries that the "dismal" state of personal finances
would not recover quickly, the Reuters/University of Michigan
Surveys of Consumers said. [ID:nN16340389]

But U.S. industrial production rose in September for a
third consecutive month, Federal Reserve data showed.
[ID:nN16344521]

Crude oil futures rallied to their highest level in a year
on Thursday, supported by government data showing gasoline and
distillate stocks dropped sharply last week as traders shrugged
off a larger-than-expected increase in crude stocks.

PRICES

* On the New York Mercantile Exchange at 1:45 p.m. EDT
(1745 GMT), November crude CLX9 was up 57 cents, or 0.74
percent, at $78.15 a barrel, trading from $76.82 to $78.28, the
highest intraday price since $79.17 was hit on Oct. 15, 2008.

* In London, new front-month December Brent crude LCOZ9
was up 37 cents, or 0.49 percent, to $76.60 a barrel, trading
from $75.39 to $76.77.

* NYMEX November RBOB RBX9 rose 2.64 cents, or 1.36
percent, to $1.9713 a gallon, trading from $1.9211 to $1.9731,
the highest level since Aug. 31's $2.07 intraday high.

* NYMEX November heating oil HOX9 was up 0.46 cent, or
0.23 percent, at $2.0227 a gallon, trading from $1.9982 to
$2.0281, the highest intraday since Nov. 10, 2008's $2.0940.

* The November/November RBOB crack spread <0#RB-CL=R> was
at $4.64, after ending at $4.11 on Thursday. The
November/November heating oil crack spread <0#CL-HO=R> was at
$6.80, after ending at $7.18 on Thursday.

* The spread between the current front month and the
five-year forward crude contract CLc61 was at $11.29, based
on the November 2014 contract Thursday settlement at $89.44.
The spread ended Thursday at $11.86.

MARKET NEWS

* The Economic Cycle Research Institute said its weekly
index of future U.S. economic growth edged down in the latest
week, but its yearly growth rate rose to a new high that
further suggests signs of a tapering recession. [ID:nNYS005508]

* Oil prices need to rise above the current $77 a barrel
price to encourage more investment by OPEC member countries,
OPEC Secretary-General Abdullah al-Badri said. [ID:nLG362487]

* U.S. Northeast heating demand will average above to well
above normal through Monday and near to above normal Tuesday,
forecaster DTN Meteorlogix said. [ID:nDTN259]

* Temperatures in the region are expected to average 10-14
Fahrenheit below normal Friday, 8-12 F below normal Saturday,
8-14 F below normal Sunday, 8-12 F below normal Monday, 3-5 F
below normal Tuesday, DTN Meteorlogix said. [ID:nDTN266]

* Nigeria's main militant group ended its three-month-old
cease-fire on Friday and threatened to resume attacks against
Africa's biggest oil and gas industry. [ID:nLF92336]
(Reporting by Gene Ramos and Robert Gibbons)