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Crude Oil Rises Above $70 As ISM Report Boosts Demand Prospects

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Crude oil prices climbed above $70 per barrel again as a positive report from the Institute for Supply Management revived demand hopes.

Light sweet crude oil for November settlement rose to $70.41 per barrel, up 46 cents on the session. Prices touched as high as $71.47 and as low as $68.32.

In economic news Monday, the Institute for Supply Management said its index of activity in the service sector rose to 50.9 in September from 48.4 in August, with a reading above 50 indicating growth in the sector. Economists had been expecting the index to increase to a reading of 50.0.

There is no major economic data on Tuesday's calendar. Kansas City Federal Reserve Bank President Thomas Hoenig speech to an economic forum sponsored by the bank's Denver branch at 9:45 a.m. ET.

The dollar also drifted lower, adding to oil's value as a hedge investment. The dollar fell to a six-day low against the euro and also slipped versus the yen and loonie.

The Energy Information Administration's weekly inventory report is due on Wednesday morning. Last week's data showed crude supplies increased 2.8 million barrels in the week ending September 25.

(Market News Provided by RTTNews)

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