Global - Oil trades near US$70 after rising as equities gain, dollar falls

Crude oil traded little changed near US$70 a barrel in New York after rising yesterday on optimism fuel demand will increase amid improved prospects for an economic recovery in the US, the biggest energy consumer. Stocks climbed as a report from the Institute for Supply Management showed that US service industries returned to growth after 11 months of contraction. Commodities also gained as the falling dollar bolstered the appeal of raw materials as a hedge against inflation. Crude oil for November delivery was at US$70.30 a barrel, down 11 cents, in electronic trading on the NYME at 9:15 a.m. Sydney time. Yesterday, the contract gained 46 cents to settle at US$70.41. Prices have increased 57% since the start of the year. (Bloomberg)