Higher oil prices

Oil prices have surged on international markets.

A barrel of crude has risen $US3.30 in overnight trade to $US71.34, its biggest one day increase since July.

The gain comes as the US dollar weakens to its lowest level in almost a year against a basket of currencies. Commodities such as gold have also rallied as investors switch to commodities to hedge inflation.

Analysts says nothing has changed fundamentally, and global commodities, which are priced in US dollars, tend to rise when the greenback falls.

OPEC, which is the source of more than a third of the world's oil supply is due to meet in Vienna this week and most analysts expect it to keep its price target at around $US70.

- NEWSTALK ZB