NYMEX

Oil prices sank under $US67 a barrel after weak jobs data quashed hopes of a speedy economic recovery in the United States, the world's top energy consumer.

New York's main contract, light sweet crude for August delivery, fell $US2.58 from Wednesday's closing price to $US66.73 per barrel, after earlier touching $US66.54.

London Brent North Sea crude for delivery in August dropped $US2.14 to $US66.65 a barrel.

Prices slumped after a US government report said the unemployment rate rose to a new 26-year high of 9.5 per cent in June.

The figures dampen hopes for an early recovery from recession, and will temper demand, analysts said.

The labour data also caused the US dollar to rise against the euro and yen as traders returned to the safe-haven currency.

A stronger US dollar makes dollar-priced oil more expensive for buyers armed with weaker currencies. In turn, this tends to dampen demand and pull the crude market lower.

COMEX

Looking to safeguard their money amid the weak economic data in the US, traders shied away from commodities in search of more conservative investments.

The dollar moved higher against most other currencies.

Even gold, traditionally a hedge against inflation, traded as if it was a risky currency, analysts said.

Gold for August delivery fell $US10.30 to settle at $US931 an ounce on the New York Mercantile Exchange.

July silver lost 34.7 cents to $US13.393 an ounce, while July copper was down 2.5 cents to $US2.29 a pound.