NYMEX-Crude losses cut, dollar off after jobs data

NEW YORK, Sept 5 (Reuters) - U.S. crude oil futures trimmed losses on
Friday as the dollar dropped after government data showed the U.S. economy
lost more jobs than expected in August.

On the New York Mercantile Exchange at 9:25 a.m. EDT (1325 GMT),
October crude CLV8 was down 6 cents or 0.06 percent at $107.83 per
barrel, trading from $105.76 to $108.10.

Technical resistance was charted at $110 with support at $105 which is
near the week's low hit Monday of $105.46.

In London, October Brent LCOV8 was down 27 cents or 0.25 percent at
$106.03 a barrel, trading from $104.24 to $106.65.

The dollar fell against the euro Friday in choppy trading after a
government report showed that the unemployment rate unexpectedly shot up to
6.1 percent in August, its highest in nearly 5 years. [USD/]

"There's a realization that we're going into an economic slowdown with
the rest of the world, but there is a sense that the U.S. is further along
in this issue and that the crisis here is probably heading towards the end
while the rest of the world is still grappling with it," said Phil Flynn,
analyst at Alaron Trading.

On Thursday, crude and product futures tumbled despite data showing
across-the-board inventory drawdowns last week, with the losses blamed on a
rise in the dollar and worries over weakening demand.

Oil companies continued their efforts to restart refineries and
offshore oil fields on Friday in a slow recovery from Hurricane Gustav. For
a complete report, see FACTBOX [ID: nN05392077]

In the Gulf of Mexico, 95.2 percent U.S. oil production remained shut.
[ID:nEIA001069]

Onshore, 11 refineries, with 11.2 percent of U.S. capacity, were still
shut while three were reported restarting.

Hurricane Ike with winds near 125 miles per hour will likely reach the
Bahamas early next week and South Florida by mid-week, the U.S. National
Hurricane Center said in its 5 a.m. EDT (0900 GMT) report Friday.

Tropical Storm Hanna, meanwhile, accelerated from the Bahamas toward
the Carolina coast. Elsewhere in the Atlantic, Tropical Storm Josephine
remained no threat to land as it plodded westward across the Central
Atlantic.

NYMEX October RBOB RBV8 was up 0.18 cent or 0.07 percent at $1.7422 a
gallon, trading from $2.6974 to $2.7430.

Resistance was charted at $2.9160 with support at $2.7370.

October heating oil HOV8 was down 1.02 cents or 0.34 percent at
$3.0135 a gallon, trading from $2.9680 to $3.0193.

Resistance lurks at $3.0905 while support was pegged at $3.0065.

The heating oil crack spread <0#CL-HO=R> dropped to $18.74 after ending
at $19.11 Thursday. The RBOB crack spread <0#RB-CL=R> was up at $7.34 after
ending at $7.21 yesterday.
(Reporting by Gene Ramos; Editing by John Picinich)