SINGAPORE: Oil prices have risen above $71 a barrel in Asian markets over increasing optimism in global economic recovery and a weak US dollar.

US light sweet crude for November delivery gained 55 cents to $71.43 a barrel, while Brent North Sea crude jumped 59 cents to $69.15.

The rally in oil prices came after most global stock markets pushed up for a second day on Wednesday.

"The optimism for economic recovery is driving equities and oil markets," Victor Shum, an energy analyst with consultancy Purvin & Gertz in Singapore, told media.

The dollar fell to 88.82 yen on Tuesday from 89.51 yen on Monday, thus raising the price of oil, which is denominated in the US currency.

This is while Britain's Independent newspaper reported that Persian Gulf states were in talks with Russia, China, France and Japan to replace the dollar with other currencies in their oil trade. Russia and Saudi Arabia later denied the report.

"The US dollar fell, partly as risk appetite led to acceleration of the carry trade, and partly on media reports that Arab oil producers may switch to pricing crude in a basket of currencies rather than the greenback," Dariusz Kowalczyk, chief investment strategist with SJS Markets financial firm, told media.