* U.S. job losses in May fewer then expected
* U.S. unemployment rate jumps to 9.4 percent
* Dollar rallies on jobs data, Wall Street up
NEW YORK, June 5 (Reuters) - U.S. crude oil futures ended lower in choppy trading on Friday, as misgivings about the latest government jobs report undermined an early surge to a seven-month high above $70 a barrel.
The report showed that, while job losses were slowing, the unemployment rate had hit the highest in almost 26 years.
"So, no, it was not as bad as expected, but it was still awful. The way we look at the world, that's at least a third of a million workers who will not be commuting to work each day, or planning business lunches or taking vacations," Peter Beutel, president at Cameron Hanover in New Canaan, Connecticut, said in a research note.
However, the U.S. dollar rallied on the jobs data, and was on track for its largest weekly gain in nearly two months against a basket of currencies as the report raised more hopes for an economic recovery. [USD/]
A stronger dollar usually causes investors in commodities traded on the currency, such as oil, to shift to alternative assets.
On Wall Street, the Dow industrials climbed on Wal-Mart's plan to buy back more of its shares, but broader market gains were muted by the jobs report. [.N]
* On the New York Mercantile Exchange, July crudesettled down 37 cents, or 0.54 percent, at $68.44 a barrel, after trading from $67.54 to $70.32, the highest front-month intraday price since $70.46 was struck on Nov. 5.
* NYMEX front-month prices were up $2.13, or 3.2 percent, from a week ago and up for a third week in a row.
* In London, July Brent crudeended down 37 cents, or 0.54 percent, at $68.34 a barrel, trading from $67.35 to $69.91, the highest intraday price since Oct. 21's $73.29.
* NYMEX July RBOBsettled down 0.75 cent, or 0.38 percent, at $1.9546 a gallon, trading from $1.9335 to $1.9945, the highest intraday since Oct. 14's $1.9990.
* NYMEX July heating oilended down 1.30 cents, or 0.78 percent, at $1.7701 a gallon, trading from $1.7546 to $1.8139, the highest intraday price since Nov. 24's $1.8302.
* The July/July RBOB crack spread <0#RB-CL=R> ended at $13.65, up from $13.60 on Thursday. The July/July heating oil crack spread <0#CL-HO=R> ended at $5.90 down from $6.12 on Thursday.
* The spread between the current front month and the five-year forward crude contractended at $15.95, widening from $15.18 on Thursday. The July 2014 contract settled at $84.39, up 40 cents, or 0.48 percent.
NYMEX crude 10-day/20-day moving average: $65.29/$61.85
NYMEX crude: $65.00/$70.00
NYMEX heating oil: $1.7180/$1.8410
NYMEX RBOB: $1.8850/$2.00
For a report on technicals click [ID:nL5544853]
* U.S. employers cut 345,000 jobs in May, the fewest since September and far less than forecast, according to the Labor Department. However, the unemployment rate rose to 9.4 percent, the highest since a matching rate in July 1983, from 8.9 percent in April, the department said. [ID:nN04486858]
* Analysts polled by Reuters had forecast nonfarm payrolls dropping by 520,000 in May. The unemployment rate had been forecast to rise only to 9.2 percent.
* White House economic adviser Christina Romer said payrolls data was consistent with a trend of moderating job losses, but the unemployment rate would stay high for a while. [ID:nN05280464]
* China's top refineries plan to raise their crude oil processing in June to record levels, after some plants completed maintenance, encouraged by a recent fuel price increase and falling fuel stocks, according to a Reuters poll. [ID:nPEK729] (Reporting by Gene Ramos and Robert Gibbons; Editing by Walter Bagley)
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