UPDATE 7-U.S. oil slides, Brent firm as spread sell-off deepens
* Brent/WTI spread widens to more than $11 in heavy selling
* U.S. dollar weakens on expectation of continued Fed stimulus
* Riyadh to shift away from U.S. over Syria - source
* Coming up: U.S. API industry stock data at 4:30 p.m. EDT
NEW YORK, Oct 22 (Reuters) - U.S. oil prices extended their decline to the lowest in nearly fuor months on Tuesday, while European Brent held firm as signs of a near-term surplus in U.S. crude spurred heavy selling in the trans-Atlantic spread.
U.S. WTI futures dropped below their 200-day moving average for the first time since June, while the closely watched Brent/WTI spread swelled by more than $1 for a third day running, hitting its widest mark since April 24 at over $11 a barrel.
"It's a trade that's really attracting some interest and people are hopping on the Brent bandwagon and selling WTI to finance it," said Stephen Schork, editor of the Schork Report in Villanova, Pennsylvania.
Brent for December pared earlier gains but was still up 28 cents per barrel at $109.92 at 11:43 a.m. EDT (1543 GMT), after trading at a session high of $110.94.
U.S. crude futures for November, which were due to expire at the end of trade on Tuesday, fell 75 cents to $98.47 per barrel. The more liquid December contract fell 65 cents to $99.03 a barrel.
Earlier in the day, Brent crude drew temporary strength from the belated release of U.S. jobs data showing the economy added a disappointing 148,000 jobs last month, news that weakened the dollar and fuelled expectations that the U.S. Federal Reserve would continue its cheap money policy.
Recent data showing that crude stockpiles in Cushing, Oklahoma, were rising again after a 14-week decline helped trigger selling pressure in the U.S. contract.