UPDATE 6-Oil falls below $66 after bleak U.S. jobs data

* Oil extends previous day's fall of nearly 4 pct

* Rising U.S., euro zone job losses hit recovery hopes

* JP Morgan sees risk of price fall to $60

(Updates throughout)

By Alex Lawler and Barbara Lewis

LONDON, July 3 (Reuters) - Oil dropped a dollar to below $66 a barrel on Friday after unemployment data hardened views economic weakness would sap energy demand and that last month's rally was overdone.

In the latest sign the economy of the world's top consumer was still struggling, data on Thursday showed U.S. employers cut 467,000 jobs in June and the jobless rate rose to a 26-year high. Euro zone unemployment climbed to a 10-year high. [ID:nSP531790]

"All the data was bad yesterday," said Rob Montefusco, a trader at Sucden Financial. "Technically, it looks pretty weak at the moment."

U.S. crude CLc1 fell by $1.22 to $65.51 a barrel by 1718 GMT, extending the previous session's nearly 4 percent drop. London Brent crude LCOc1 fell $1.35 to $65.30.