* Non-farm payrolls data much worse than expected
* U.S. employers cut 240,000 jobs in October
* Crude gives up most of its early gains
(Recasts after payrolls data, adding quotes, detail)
By Christopher Johnson
LONDON, Nov 7 (Reuters) - Oil fell towards $60 a barrel on
Friday, giving up early gains after much-weaker-than-expected
U.S. jobs figures deepened pessimism over the outlook for world
economic growth.
U.S. crude for December delivery <CLc1> fell 37 cents to
$60.40 a barrel by 1410 GMT. It earlier risen to $62.82.
London Brent crude for December <LCOc1> was down $0.23 at
$57.20 a barrel.
U.S. employers cut payrolls by 240,000 in October, much more
severely than expected, while September registered the biggest
monthly loss in jobs in nearly seven years, according to a
government report on Friday that showed U.S. labour markets were
sharply deteriorating.
The Labor Department said the U.S. unemployment rate shot up
to 6.5 percent from 6.1 percent in September, the highest since
March 1994. Wall Street economists had previously estimated that
200,000 U.S. jobs had been lost in October.
"The figures reinforce bearish sentiment -- the doom and
gloom," said Tony Machacek, futures broker at Bache Commodities.
Oil fell below $60 a barrel for the first time since March
2007 on Thursday, depressed by dismal projections for economic
growth in the world economy next year.
"Technically, the picture looks quite negative after
yesterday's close. After the close well below $60 for Brent, I
wouldn't be surprised to see further weakness," said Machacek,
adding that a push down towards $50 was possible in the next two
or three weeks.
"PATTERN OF DETERIORATION"
Evidence of a worldwide economic downturn mounted.
The International Monetary Fund has predicted 2009 global
economic growth of 2.2 percent, down 0.8 percentage points from
its October forecast.
Deutsche Bank was even more pessimistic.
"The DB forecast for 2009, at 1.2 percent GDP growth, is
even lower than the IMF -- based on a lower assessment for
China," the bank said in a research note.
"In our view, as economic forecasts fall, consensus oil
price forecasts will follow a similar pattern of deterioration."
Deutsche Bank's current forecast is for $60 a barrel in
2009.
Oil's steep slide from a peak of more than $147 a barrel in
July has already spurred OPEC to rein in supply from Nov. 1.
Some members of the Organization of the Petroleum Exporting
Countries want to cut more.
Venezuela's oil minister Rafael Ramirez has said OPEC should
act again. "We say (a new cut should be) at least a million," he
told Reuters on Thursday. []
But Shokri Ghanem, Libya's top oil official, said the group
was not actively considering cutting output again. []
OPEC is due to meet next on December 17.
Some analysts believe the market's precipitous fall since
July might have been overdone.
"Despite all of the evidence of weak demand and ample
stocks, we think the current valuation reflects a lack of
appreciation for the adjustments being made on the supply side
of the market," said Tim Evans at Citi Futures Perspective.
(Additional reporting by Jane Merriman in London and Fayen
Wong in Perth)
