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Oil eased in Asian trade Tuesday as traders continued to evaluate the pace of recovery in the US economy, the world's biggest energy user, analysts said.
New York's main contract, light sweet crude for November delivery dropped five cents to 70.36 dollars a barrel.
Brent North Sea crude for November delivery fell nine cents to 67.95 dollars a barrel.
Market players continued to digest economic data from the US that could help indicate demand prospects.
New data released Monday by the Institute of Supply Management showed the US services sector grew in September for the first time in a year with its non-manufacturing index rising to 50.9 percent from 48.4 percent in August.
Any number above 50 percent indicates growth.
Services makes up the lion's share of US economic activity and employment, and is therefore critical to recovery from the long recession. The ISM index had declined for 11 consecutive months.
"It was its highest reading since May 2009 and the first time since August last year that this part of the US economy was growing," said Dariusz Kowalczyk, chief investment strategist with SJS Markets financial house.
The ISM data on Monday followed last week's figures by the Labor Department showing job losses accelerated to 263,000, sending the unemployment rate to a 26-year high of 9.8 percent in September.
Phil Flynn, an analyst with PFG Best, cautioned that oil prices could remain under pressure.
"Job losses are mounting and oil supplies are rising. It is time to face facts. Recent economic data is undermining the bull's oil case," he said.
"Welcome to the jobless economic recovery that should reduce oil demand expectations even further as we look out into our future."
