* Poor U.S. jobs data, Europe's debt woes weigh on sentiment
* Hungary government says will aim to meet deficit goal
* U.S. dollar index rises, Asian stocks set to fall
(Updates prices, adds G20, econ calendar, oil spill)
By Fayen Wong
PERTH, June 7 (Reuters) - Oil fell nearly 2 percent on
Monday, extending the previous session's steep decline, dragged
lower by poor U.S jobs data and as dire warnings by Hungary's
new government reignited market concern about Europe's debt
woes.
The broader market rout looks set to continue on Friday,
with Japan's Nikkei average down 2.75 percent, tracking more
than 3 percent declines for both the Dow Jones industrial
average <> and the Standard & Poor's 500 Index <.SPX>.
[]
U.S. crude for July delivery <CLc1> fell $1.38, or 1.93
percent, to $70.13 a barrel by 0024 GMT. The contract fell
$3.10 to settle at $71.51 on Friday.
ICE Brent <LCOc1> fell $1.08 to $71.01 on Monday.
"There are lingering concerns about the European fiscal
problems and also of course the weak U.S. jobs numbers on
Friday also added to the gloom," said Toby Hassall, chief
commodities analyst at CWA Global Markets Pty Ltd in Sydney.
"In addition to that, the strengthening U.S. dollar is also
adding pressure as well. It's a multitude of negative
influences out there that are currently pressuring oil prices."
The U.S. dollar index <.DXY> rose 0.42 percent against a
basket of currencies on Monday, while the euro extended losses
and fell to its lowest in more than four years against the
dollar on mounting worries about the region's debt problems.
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Hungary's government sought to draw a line under
"exaggerated" talk of a possible Greek-style debt crisis and
said on Saturday it aimed to meet this year's budget deficit
target. []
Despite attempts to calm markets, Hungary's debt woes have
reignited fears that more Eastern European nations could reveal
financial frailties.
Dismal jobs data released by the U.S. government on Friday
dented investors' hopes for a smooth economic recovery in the
world's largest energy consumer.
The data showed nonfarm payrolls rose by about 431,000 jobs
on a surge of temporary hirings for the U.S. Census, but
private employment, which measures the labor market's strength,
rose 41,000, a number that analysts said was disappointing.
[]
Stocks and oil prices could face further pressure this week
unless investors get some relief from worries about Europe,
jobs and the toll they might take on the economic recovery.
[]
Among the week's major economic indicators are U.S. retail
sales and consumer sentiment, both of which should offer clues
on the outlook for spending. Also on tap will be international
trade data.
Still, analysts said the start of the Atlantic hurricane
season this week -- which the top U.S. government weather
agency has warned could be the most intense since 2005 -- would
provide some support to energy prices. []
"Once the nerves calm down, and fundamentals re-assert
themselves, we would expect prices to move higher quickly,"
analysts at Barclays Capital said in a report, citing improving
oil demand in Japan and the United States.
The Group of 20 leading economies reached an uneasy
compromise over the speed of budget cuts needed to calm global
financial markets and sought to bolster market confidence by
declaring themselves ready to safeguard recovery and stressing
the importance of putting their public finances in order.
[]
(Editing by Michael Urquhart)
