NEW YORK (Reuters) - Oil prices on Tuesday posted their biggest gain in more than a month as weakness in the U.S. 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, with representatives signaling the group would likely keep output unchanged.
NYMEX crude for October delivery rose $3.30 or 4.85 percent to $71.32 a barrel by 1710 GMT (1:10 p.m. EDT), 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.
"The petroleum markets have jumped back to the upside with their first impulse following the holiday, with a similar buying spree in the equity markets and a weaker U.S. dollar helping to spur the rally,"
On the bright side we can hope some of the jump may be linked to increased economic activity, but with the price of oil looking to rise excessive energy costs might further dampen any hope of job growth and perhaps lead to a further weakening of the market.
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