as investors quenched a growing risk appetite for tangible commodities against the background of a weakening dollar and the looming prospect of inflation. The move by gold above $1,000 probably triggered crude markets to rally, spurring inflation fears and causing traders to buy oil as a hedge against inflation.

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.

Analysts said there were no real fundamental factors driving oil prices higher, with global oil product consumption remaining sluggish, oil inventories at historic highs and the OPEC widely expected to keep its official output target unchanged at its meeting today.

Ahead of the meeting, Saudi Arabia’s oil minister Ali al-Naimi said that the oil market is in good shape and both consumers and producers are happy with the current price.

The UK market and the European markets have opened up flat today. U.S futures markets are pointing to a negative start when their markets resume trading this afternoon. Futures currently forecast the Dow to open down circa 46 points.

Sources: Reuters: BBC: Bloomberg: Lawshare: Deutsche Bank (db): Proquote: Financial Times: Wall Street Journal: CLSA: Sharescope: Market News. Capital Economics: CNBC: Wikipedia: GaveKal:

Please note this report provides a guide to some of the relevant areas that individual investors should consider discussing with an authorised adviser in relation to their specific circumstances, it does not constitute individual advice. As a result no action should be taken or refrained from being taken as a result of its content.