Oil prices fall below 70 dollars

SINGAPORE: Oil fell below 70 dollars in Asian trade on Monday as a weak US jobs report hurt investor sentiment, analysts said.

New York's main futures contract, light sweet crude for delivery in July, fell 1.82 dollars to 69.69 dollars a barrel in morning trade. Brent North Sea crude for July delivery shed 1.46 dollars to 70.63 dollars.

"Oil has continued to plunge this morning, and that is also consistent with Asian equities markets, which are tanking," said Victor Shum, a Singapore-based analyst with Purvin and Gertz energy consultancy. Major Asian bourses nosedived in early trade on Monday, with the Japanese, Australian, South Korean and Hong Kong stock markets all falling after opening.

Prices could well drop below 2010 lows of 67.90 dollars a barrel experienced in May this year over the next few days, said Shum. "It certainly could fall to that level... right now the sentiment is to sell, and the momentum could make prices drop further," he said.

Oil and stock markets are being depressed by "disappointing US employment data," he added. A weak US jobs report released Friday raised questions about the strength of the US economic recovery, souring international investor sentiment.

The US economy created 431,000 non-farm jobs in May the vast majority due to temporary government hiring for this year's census. Most experts had expected 500,000 would be added. Fears of the eurozone's financial crisis spreading to other countries within the region was also dragging equities and oil markets south, Shum said.

"Both markets are reacting to concerns on the European market of the crisis spreading to other markets," he said.