LONDON (AFP) - Oil prices rallied above 79 dollars on Monday as deadly Hurricane Ida threatened to damage oil installations in the Gulf of Mexico despite being downgraded to a tropical storm, analysts said. New Yorks main contract, light sweet crude for delivery in December, jumped 1.76 dollars to 79.19 dollars a barrel, also as the US currency weakened, they added. Brent North Sea crude for December delivery gained 1.59 dollars to 77.46 dollars in London trading. Both contracts closed lower on Friday after official data by the Labor Department showed the US unemployment rate had jumped to 10.2 percent in October as 190,000 jobs were shed, stoking fears for energy demand. Ida, which was downgraded to a category one storm early Monday, took aim at the United States and oil fields in the Gulf of Mexico after causing flooding and landslides that killed 124 people in El Salvador. The price of crude oil rose 1.5 percent on Monday as the dollar weakened and Hurricane Ida crossed into the Gulf of Mexico, amid concerns the storm would sever production from an area where the US generates over a quarter of its oil production, Sucden Financial analysts wrote in a note to clients. Oil prices meanwhile rebounded after falling on Friday when the Labor Department report, seen as one of the best indicators of economic momentum, showed a rise in the jobless rate to the highest level since 1983. But the number of jobs lost narrowed to the lowest level in more than one year. The United States is the worlds biggest energy user and is seen as a crucial driver of oil demand, which has been depressed by the global economic slump. Meanwhile top oil-producing countries fear that the UN climate change conference in Copenhagen next month could levy new taxes on the oil and gas industries, Algerian Energy Minister Chakib Khelil was quoted as saying on Sunday. Khelil told the Algerian APS news agency that the Organization of Petroleum Exporting Countries (OPEC), a 13-member cartel of oil-rich nations, are worried any new taxes agreed in the Danish capital could have a negative impact on their economies. Khelil said OPEC, of which Algeria is a member, would work together to strike a common position ahead of the December conference in order to protect their interests. Jose Maria Botelho de Vasconcelos, Angolas oil minister and current OPEC president, vowed last month that the worlds major oil producers would resist any move that would punish their industries. In Copenhagen, world leaders will try to seal a new accord to fight climate change after the Kyoto Protocol requirements expire in 2012.