Oil rebounded in Asian trade today, lifted by strong regional stocks, which rallied after US aluminium giant Alcoa said it swung to profit in the third quarter.
New York's main contract, light sweet crude for November delivery, was up 83 cents to $70.40 a barrel in the morning trade.
Brent North Sea crude for November delivery climbed 82 cents to $68.02.
"Oil is drifting up as Asian stock markets are also trading higher," said Victor Shum, a senior principal with energy consultancy Purvin and Gertz in Singapore.
He said that Alcoa had returned to profitability after three consecutive quarters of losses drove stocks and oil prices higher.
Alcoa said its net income was $77 million, compared with a net loss for the second quarter of $454 million.
It was the first company in the blue chip Dow Jones Industrial Average index to announce results for the September quarter.
Revenues were $4.6 billion compared with $4.2 billion in the second quarter, a nine per cent increase, Alcoa said in a statement.
Alcoa's report is "very positive and this really marks a strong start for the third quarter corporate earnings season," Shum said.
"This sparked the stock markets in Asia to turn up and oil has gained along with them," he added.
