NYMEX-Crude drops on job losses, recovery doubts
* Equities, oil futures weighed by economic concern
* Dollar strengthens on risk aversion, recovery worry
NEW YORK, July 6 (Reuters) - U.S. crude oil futures fell on Monday as economic concerns reflected in dismal employment numbers, tepid demand and rising fuel inventories kept pressure on oil, as did the dollar's strength against the euro.
"A lot of people are nervous about the economy and now, everybody wants to get out of the exits at the same time. We are seeing this in the stock markets, the gold market and markets for other commodities, including oil," said Phil Flynn, analyst at PFGBest Research in Chicago.
The yen and the U.S. dollar gained broadly as investors debated the outlook for the global economy, shunning risk and buying currencies perceived to be safe. [USD/]
The U.S. service sector contracted in June, but at a slower pace than in May, a report showed Monday. The Institute for Supply Management's services index rose to 47.0 last month from 44.0 in May, above economists' forecast. [ID:nL6341610]
Last week, the Labor Department said U.S. employers cut 467,000 jobs in June, while the unemployment rate rose to 9.5 percent, the highest level since August 1983. [ID:nN01210643]
"The ... economic hopefulness has run head-long into the reality of extraordinary joblessness in the U.S. and globally," John Kilduff, senior vice president at MF Global in New York, said in a research note.
Markets await a Group of Eight summit on July 8-10.
Nigerian militants said they sabotaged a Chevron (CVX.N) oil facility and seized a chemical tanker and six crew members. The Movement for the Emancipation of the Niger Delta said it attacked Chevron's facility on Sunday, hours after it sabotaged a Royal Dutch Shell (RDSa.L) operated oil well. [ID:nL627910]
PRICES
* On the New York Mercantile Exchange, at 11:53 a.m. EDT (1553 GMT), August crude CLQ9 was down $2.28, or 3.42 percent, at $64.45 a barrel, trading from $63.40 to $67.17.
Last Tuesday's $73.38 peak was the highest intraday front-month crude oil price since crude hit $75.69 on Oct. 21.
* In London, August Brent crude LCOQ9 fell $1.32, or 2.01 percent, at $64.29 a barrel, trading from $63.26 to $65.46.
* NYMEX August RBOB RBQ9 fell 3.67 cents, or 2.05 percent to $1.7541 a gallon, trading from $1.7195 to $1.80.
* NYMEX August heating oil HOQ9 fell 4.86 cents, or 2.86 percent, to $1.6530 a gallon, trading from $1.6234 to $1.7099. * The August/August RBOB crack spread <0#RB-CL=R> was at $9.12, after ending at $8.48 on Thursday. The August/August heating oil crack spread <0#CL-HO=R> was at $4.92, after ending at $4.74 on Thursday.
* The spread between the current front month and the five-year forward crude contract CLc61 was at $19.58, based on the August 2014 contract Thursday settlement at $82.03. The spread ended Thursday at $15.30.
TECHNICALS
NYMEX crude 10-day/20-day moving average: $68.55/$69.63
Technical support/resistance:
NYMEX crude: $62.15/$66.00
NYMEX heating oil: $1.6250/$1.7250
NYMEX RBOB: $1.72/$1.82
For a full report on technicals, click on [ID:nL6222899]
MARKET NEWS
* Saudi Arabia plans to keep oil shipments to the U.S. unchanged in August, several U.S. buyers of Saudi crude told Reuters on Monday. [ID:nN06251623]
* France and Britain called on Monday for discussions between oil producers and consumers to curtail oil price volatility. [ID:nL6271869] (Reporting by Robert Gibbons and Gene Ramos; Editing by Lisa Shumaker)
