Oil Rises Towards $71 a Barrel

5 October 2009 (Last Updated October 5th, 2009 18:30)

Oil prices rose towards $71 a barrel on Tuesday, helped by a fall in the dollar after a report that Gulf Arab states are in talks to replace the US dollar with a basket of currencies in oil trading. The report was rapidly denied by senior officials from leading oil producers Saudi Arab

Oil prices rose towards $71 a barrel on Tuesday, helped by a fall in the dollar after a report that Gulf Arab states are in talks to replace the US dollar with a basket of currencies in oil trading.

The report was rapidly denied by senior officials from leading oil producers Saudi Arabia, Russia, Kuwait and the United Arab Emirates, reports Reuters.

A bounce in stock markets, spurred by a positive US services sector report on Monday, also helped improve investor mood.

US crude for November rose 55¢ to $70.96 a barrel by 07.46 GMT, after gaining 46¢ to settle at $70.41 on Monday. London Brent was up 55¢ to $68.59, reports Reuters.

The dollar fell on Tuesday after Britain's Independent newspaper reported Arab states were in talks to end the use of the dollar for oil trading.