Oil prices surge again

Light, sweet crude for November delivery rose 3.90 dollars, or 5.8 percent, to settle at 70.61 dollars a barrel on the New York Mercantile Exchange, leaving oil prices basically flat in the third quarter after rising for the previous two.

According to the U.S. Energy Department's Energy Information Administration (EIA), gasoline inventories dropped by 1.6 million barrels in the week ended September 25, surprising analysts who had expected a jump.

Oil got further support as the dollar dropped against most of its major counterparts and headed for a second straight quarterly loss against the euro, boosting demand for commodities to hedge against inflation.

In London, Brent Crude for November delivery rose 3.36 dollars to 68.85 dollars a barrel on the ICE Futures exchange.