Oil prices have fallen to levels around US$70 as slowing economic recovery in USA and warnings about Hungary's debt dimmed outlook for energy demand. US crude for July fell to US$69.5, before recovering to US$70.9, while ICE Brent crude for July fell to US$71.8.
The euro fell below US$1.19 to its lowest since 2006, as investors preferred the US dollar, shedding riskier equities and commodities that sent stock markets in Asia and Europe lower. US jobs data added fewer jobs than expected, a sizeable portion of those hired were temporary for the US Census. Concerns abound in the market on comments from ruling party officials in Hungary suggesting it could be heading for a Greece-style debt crisis. With this, worries linger about the European fiscal problems.
The onset of the Atlantic hurricane season, warned by the top US government weather agency to be the most intense since 2005. The hurricane related impacts could provide some support for energy prices.