Weak Dollar Helps Push Oil Higher

UNDATED (AP) -- Crude oil prices climbed Tuesday, as traders reacted to a weaker dollar and stronger stock market.

Benchmark crude for November delivery rose 47 cents to settle at $70.88 a barrel on the New York Mercantile Exchange.

That's continuing in Wednesday trading in Asia. It's up another 67 cents to $71.55.

Traders will be watching today's report from the Energy Department on supplies. It is expected to show that crude oil stocks rose 1.9 million barrels over the past week, according to energy information provider Platts.

The dollar fell Tuesday toward year lows against the euro and yen after Britain's Independent newspaper reported that Arab states, China, Russia, Japan and France were meeting secretly to end the dollar's role in pricing oil. Several countries denied such talks had taken place.

Because crude is priced in dollars it becomes cheaper when the dollar falls. Some investors also use commodities such as oil and gold as a hedge against inflation and dollar weakness. Gold hit a record $1,043 an ounce Tuesday.

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