Oil prices today posted their biggest gain in more than a month as weakness in the US dollar fired up inflation fears and triggered a rush of buying across commodities markets.
The surge back over $70 a barrel cast a spotlight on the OPEC cartel on the eve of their production policy meeting in Vienna.
Representatives have signalled the group is likely to keep output unchanged.
US crude rose $3.30 to $71.32 a barrel by 6.10pm, the largest percentage increase since July 30. London Brent crude rose $3.12 to $69.65 a barrel.
The gains came as the dollar slumped to its lowest level in almost a year against a basket of currencies and gold rallied above $1,000 an ounce, its highest since March 2008.
Oil prices, which fell 6.5% last week, have been trading in a range between $65 and $75 a barrel since the start of August, with prices swinging on economic data as investors seek clues about the speed of a recovery from the recession.
Investors will be on watch for inventory data, delayed by a day this week due to Monday's holiday. Analysts polled by Reuters today expected the data to show a decrease in US crude inventories of 1.5 million barrels.
