Crude oil traded near $71 a barrel after surging yesterday as a slump in the dollar spurred demand for commodities.
The news followed China's pledge to stockpile more supplies for emergency use, according to Bloomberg.
Oil gained as much as 5.5% yesterday as the US currency dropped to the lowest level this year against the euro and on speculation inflation will accelerate.
China, the world’s second-largest crude oil user, approved a plan to have 169 million barrels in the second phase of an emergency stockpile, state-owned China National Petroleum said yesterday, according to Bloomberg.
Crude oil for October delivery was at $71.16 a barrel, up $0.06 in electronic trading on the New York Mercantile Exchange at 2.55pm in Singapore. Yesterday, the contract rose $3.08, or 4.5%, to $71.10, the biggest gain since 19 August. Prices are up 60% this year.
Members of the Organization of Petroleum Exporting Countries (Opec) have said that the group should keep its output target unchanged at 24.845 million barrels a day when it gathers today in Vienna.
All of the 26 analysts surveyed by Bloomberg News predicted that the organisation would keep quotas steady.