ICE Brent oil futures trading close to $70 on Tuesday

ICE Brent oil futures price rose toward $70 a barrel on Tuesday trading, helped by a fall in the dollar after a newspaper report that Gulf Arab states were in secret talks to replace the US dollar with a basket of currencies in oil trading.

A bounce in the Asian stock markets, spurred by a positive US services sector report, also helped to improve investors’ mood and rekindled hopes the recovery in the world’s largest economy was gaining traction.

“Oil is taking directions from the US dollar. But oil prices are still trading sideways and it may be hard for prices to break out of the $75 mark until there are convincing signs of a sustained demand recovery,” said David Moore, a commodities analyst at the Commonwealth Bank of Australia.

Crude oil raders have been looking to macroeconomic data and equities markets for signs of a potential end of the recession that could boost consumption and draw down high oil inventories.

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