* U.S. jobless rate rises to highest since June 1983 * Wall Street down at the open NEW YORK, Oct 2 (Reuters) - U.S. crude oil futures fell more than $2 on Friday as U.S. employers cut more jobs than expected in September, lifting the unemployment rate to a 26-year high. "Disappointing, but hardly shocking after yesterday's initial jobless claims. While there has been an improvement in the employment picture, compared to previous recessions the pace of the current recovery can only be characterized as glacial," said Mike Fitzpatrick, vice president at MF Global in New York. U.S. employers cut a deeper-than-expected 263,000 jobs in September, lifting the unemployment rate to 9.8 percent, the highest since June 1983. The Labor Department said payrolls had now dropped for 21 consecutive months. [ID:nN02314318] "The recession may be 'technically' over, but what really counts, i.e., the perception of the recession, is obviously still around and as long as that is the case, consumers will alter their behavior in accord," said Stephen Schork, editor of the Schork Report, in Villanova, Pennsylvania. The dollar's early bounce and crude oil's persistent high inventories and tepid demand weighed on energy futures, as did Thursday talks, described as productive, between Iran and the West over Tehran's nuclear program. After the jobs report, the dollar gave up gains against the euro after investors had initially bought the dollar versus the euro in a flight-to-safety bid. [USD/] Wall Street was weaker at the open. [.N] PRICES * On the New York Mercantile Exchange, at 9:43 a.m. EDT (1343 GMT), November crude CLX9 was down $1.65, or 2.33 percent, at $69.17 a barrel, trading from $68.32 to $70.69. * In London, November Brent crude LCOX9 fell $1.75, or 2.53 percent, to $67.44 a barrel, trading from $66.74 to $68.74. * NYMEX November RBOB RBX9 fell 3.95 cents, or 2.25 percent, to $1.7184 a gallon, trading from $1.7014 to $1.7515. * NYMEX November heating oil HOX9 fell 4.65 cents, or 2.54 percent, to $1.7809 a gallon, trading from $1.7603 to $1.82. * The November/November RBOB crack spread <0#RB-CL=R> was at $2.88, after ending at $3.01 on Thursday. The November/November heating oil crack spread <0#CL-HO=R> was at $5.50, after ending at $5.93 on Thursday. * The spread between the current front month and the five-year forward crude contract CLc61 was at $14.55, based on the November 2014 contract Thursday settlement at $83.72. The spread ended Thursday at $12.90. TECHNICALS NYMEX crude 10-day/20-day moving average: $68.69/$69.77 Technical support/resistance: NYMEX crude: $70.00/$72.00 NYMEX heating oil: $1.80/$1.85 NYMEX RBOB: $1.75/$1.80 For a full report on technicals, click on [ID:nL2163857] MARKET NEWS * Both the United States and Iran described talks between Iran and six major powers over Tehran's nuclear program on Thursday as productive. Iran agreed to allow U.N. inspectors into a newly disclosed enrichment plant. [ID:nLU404202] * Russia's monthly oil output exceeded 10 million barrels per day in September for the first time, making it the world's largest producer. [ID:nL2451607] (Reporting by Robert Gibbons; Editing by Lisa Shumaker)

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