Oil stabilises at $43 ahead of key meet

Oil rose above $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 US 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 $43.17 a barrel 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,” said Eugen Weinberg of Commerzbank.

Also supporting prices was rising vehicle sales in China — a further sign of strong petrol demand in the No. 2 consumer — and a plan by oil and gas workers in Kuwait to go on strike from Sunday.