UPDATE 7-Oil falls on US jobs data, euro tumble

                                
 * U.S. May jobs rise disappoints, weighs on oil
                                
 * Dollar rise pressures oil as Euro drops to 4-year low
                                
 * Equities markets hit by jobs data, investors risk averse
                                
 * Coming up: CFTC positions report at 3:30 p.m. EDT
 (Recasts, updates prices, market activity; new byline, changes
dateline, previously LONDON)
                                
 By Robert Gibbons
                                
 NEW YORK, June 4 (Reuters) - Oil fell more than 3 percent
on Friday, sliding below $72 a barrel after U.S. employment
data missed expectations, fueling concern about the economy and
the outlook for fuel demand.
                                
 U.S. nonfarm payrolls rose 431,000 in May, well short of
the 513,000 analysts had expected, despite heavy government
hiring for the census. Growth in private employment, slowed
sharply. [ID:nN03243431]
                                
 "We were expecting bigger growth in private employment and
the figure looks relatively weak," said Christophe Barret, oil
analyst at Credit Agricole.
                                
 U.S. crude for July <CLc1> was down $2.80, or 3.75 percent,
at $71.81 a barrel at 12:11 p.m. EDT (1611 GMT), dropping as
low as $71.62 from an early $75.42 peak. ICE Brent <LCOc1> was
down $2.73 at $72.68.
                                
 U.S. crude ended 2.4 percent higher on Thursday to settle
at $74.61, the highest settlement for a front-month contract
since May 12, supported by statistics showing crude inventories
fell last week by more than forecast. [EIA/S]
                                
 On Friday, U.S. crude tested and then pushed below support
at Thursday's $72.32 low as the euro <EUR=> fell below the key
$1.20 level, a four-year low, and then tested below support at
Tuesday's $71.64 low.
                                
 Both U.S. and European stock markets fell sharply on Friday
after the release of the jobs data, while the dollar
strengthened as fears of a slower-than-expected global economy
recovery dampened risk appetite.[.N] [.EU] [USD/]
                                
 Fears about tougher funding conditions in Europe and the
impact of tighter fiscal policy on growth has also been keeping
a heavy lid on buying of riskier assets. [ID:nN03268754]
                                
 Copper hit a five-month low as the jobs data fractured
confidence already dented this week by worries over Chinese
monetary tightening and euro zone debt. [ID:nLDE6530RZ]
                                
 Adding to perceptions that its meteoric growth may be
slowing, an official newspaper reported China's main ports
imported 17.29 million tonnes, or 4.07 million barrels per day,
of crude in May, up 12.8 percent from a year earlier, but down
7 percent from April. [ID:nTOE65302F]
                                
 The start of the Atlantic hurricane season this week was
punctuated by the top U.S. government weather agency warning it
could be the most intense since 2005. This provided some
support earlier this week to energy prices. [ID:nN2798815]
                                
 Hurricanes Katrina and Rita severely damaged and disrupted
U.S. oil production, refining and consumption when they crashed
through the Gulf of Mexico region in 2005.
                                
 Adding to concern about storms was the oil spilled by BP's
felled oil rig. BP began capturing some oil on Friday after
installing a containment cap atop a ruptured Gulf of Mexico
well and U.S. President Barack Obama was set to make his third
trip to the stricken area since the disaster. [ID:nN0444097]
 (Additional reporting by Joe Brock in London; Editing by David
Gregorio)