NYMEX-Crude down on strong dollar, weak equities

* Dollar strengthens as risk appetite fades

* Wall Street dips, investors assess economic prospects

* Mild weather, profit-taking hit energy futures

NEW YORK, Nov 20 (Reuters) - U.S. crude oil futures pared
some losses at midday Friday, but the mood remained bearish on
a resurgent dollar and as equities were pressured by economic
recovery worries.

"Oil is clearly still tied to broader financial markets and
seeing losses due to a stronger dollar and a drop in stock
prices. To rally, we'd need to see more significant signals of
economic activity perking up," said Gene McGillian, analyst at
Tradition Energy in Stamford, Connecticut.

Underpinning the day's weakened energy futures prices were
persistent demand concerns amid high inventories.

Reflecting currently poor demand for refined products,
Valero Energy Corp (VLO.N), the largest independent U.S.
refiner, said that it will permanently shut down its 210,000
barrel-per-day Delaware City, Delaware, refinery because of the
weak economic conditions. [ID:nN20224848]

Analysts and brokers also noted relatively mild weather,
especially in the U.S. Northeast, the market's recent inability
to sustain prices above $80 a barrel, and the Friday expiration
of the NYMEX December crude contract.

Traders also noted some profit-taking after prices hit
highs above $80 midweek and position-squaring ahead of a
shortened week, with markets closed for Thanksgiving Day.

The dollar rose for a second straight session on Friday as
investors cut exposure to risky assets and high-yield
currencies ahead of a holiday-shortened week in the United
States. [USD/]

Worst-than-expected results two bellwethers helped push
Wall Street to a third straight day of declines, as investors
reassess the global economic outlook and see few reasons to
make big bets after the market has jumped 20 percent this year.
[.N]

PRICES

* On the New York Mercantile Exchange, at 11:55 a.m. EST
(1655 GMT), December crude CLZ9 was down 21 cents, or 0.27
percent, at $77.25 a barrel, trading from $76.20 to $77.99.

* NYMEX January crude CLF0 was down 33 cents, or 0.42
percent, at $77.72 a barrel, trading from $76.76 to $78.61.

* In London, January Brent crude LCOF0 was of 10 cents,
or 0.13 percent, at $77.54 a barrel, trading from $76.50 to
$78.15.

* NYMEX December RBOB RBZ9 rose back and was up 1.82
cents or 0.92 percent, at $1.9877 a gallon, trading from
$1.9440 to $1.9909.

* NYMEX December heating oil HOZ9 was down 0.19 cent, or
0.1 percent, at $1.9945 a gallon, trading from $1.9589 to
$2.0077.

* The December/December RBOB crack spread <0#RB-CL=R> was
at $6.23, after ending at $5.26 on Thursday. The
December/December heating oil crack spread <0#CL-HO=R> was at
$6.52, after ending at $6.39 on Thursday.

* The spread between the current front month and the
five-year forward crude contract CLc61 was at $15.27, based
on the December 2014 contract Thursday settlement at $92.52.
The spread ended Thursday at $15.06.

TECHNICALS

NYMEX crude 10-day/20-day moving average: $78.36/$78.57

Technical support/resistance:

NYMEX crude: $75.00/$80.00

NYMEX heating oil: $1.9355/$2.0680

NYMEX RBOB: $1.9065/$2.0315

For a full report on technicals, click on [ID:nLK630314]

MARKET NEWS

* Valero Energy Corp (VLO.N) shut a hydrodesulferization
unit at its Corpus Christi, Texas, refinery due to bad weather
conditions, the company said in a filing. [ID:nN20221643]

* U.S. Northeast temperatures are expected to average 5-10
Fahrenheit above normal Friday and Saturday, stay above normal
through Tuesday, and average near normal in the six- to 10-day
outlook, forecaster DTN Meteorlogix said. [ID:nDTN456]

* U.S. highway travel rose 2.5 percent in September from a
year ago, the Transportation Department said. [ID:nN20185009]

* Chinese state oil firms have agreed to raise 2010 crude
imports from Saudi Arabia by about 12 percent from 2009 to top
1 million barrels a day, traders said. [ID:nPEK268513]
(Reporting by Gene Ramos, Robert Gibbons and Joshua Schneyer;
Editing by Marguerita Choy)