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World Oil rises above US$43 a barrel

Staff Reporter | 6:52 PM |
Oil rose above US$43 a barrel to its highest level so far in 2016 on Tuesday, supported by hopes that a meeting of oil producers will agree steps to tackle a supply glut, and by a weak United States dollar and further signs of strong demand in China.
Many members of OPEC plus outside producers such as Russia are meeting in Doha, Qatar, on Sunday to discuss freezing output.
The dollar fell to its lowest in nearly eight months against a basket of currencies, supporting commodities.
Brent crude was up 34 cents at US$43.17 a barrel at 1057 GMT and earlier in the session reached a 2016 high of $43.58 US crude gained 23 cents to $40.59.
“The weak dollar is one important reason,” Eugen Weinberg of Commerzbank said.
“Also, the fact that we are above US$40 and at multi-month highs is also contributing to the price increase as it is prompting some speculative buying.” Also supporting prices was rising vehicle sales in China – a further sign of strong gasoline demand in the No 2 consumer – and a plan by thousands of oil and gas workers in Kuwait to go on strike from Sunday.
Oil prices have collapsed from above US$100 in mid-2014 due to oversupply. The Organisation of the Petroleum Exporting Countries’ decision in November 2014 had deepen the decline. – Reuters