LONDON (AFP) - Oil prices rallied Friday following news of shrinking unemployment in the United States, the worlds biggest energy-consuming nation. Brent North Sea crude for delivery in January jumped 1.12 dollars to 79.48 dollars a barrel in late London trading. New Yorks main contract, light sweet crude for January delivery won 1.15 dollars to 77.61 dollars a barrel. The troubled US labor market saw a dramatic improvement in November as the number of jobs lost narrowed to 11,000 and the unemployment rate dipped to 10.0 percent, official data showed on Friday. The Labor Department jobs figures showed a massive improvement from October and earlier months and suggested the US economy was nearing job growth needed to sustain a fragile recovery from recession Oil prices had fallen on Friday ahead of the jobs data owing to concerns about poor energy demand, traders said. This weeks US Department of Energy (DoE) report of a rise in US crude stockpiles has renewed fears over weak American demand for oil. Caution is expected to remain on the back of unexpected high levels of inventories, analysts from Singapores United Overseas Bank said in a report. The DoE in its weekly report Wednesday said crude reserves rose by 2.1 million barrels in the week ending November 27, more than double market expectations. It said US gasoline reserves had soared by four million barrels last week, much higher than the 700,000-barrel rise tipped by analysts. However, US distillate stocks, which include heating fuel, dropped by 1.2 million barrels. Oil traders were also looking ahead to an upcoming OPEC meeting that will decide on producers crude output levels. Saudi Oil Minister Ali al-Naimi on Friday said that OPEC should not raise its production quota at a meeting later this month as the current oil price is close to the target. Why should we raise output? Naimi, whose country is the de facto head of the cartel, told reporters in Cairo. We still have time (for the meeting). But right now, the price is ok, between 70 and 80 (dollars). Its close to the target that we set at 75 dollars a barrel, Naimi said. Naimi was in the Egyptian capital to attend a ministerial conference of the Organization of Arab Petroleum Exporting Countries (OAPEC) on Saturday. Several OPEC members have already said they want to keep production unchanged at their December 22 meeting in Luanda, Angola because they feel current crude prices are satisfactory.