Talk of extending the current 9.7 million barrels a day production cut for three more months saw global oil prices hit their highest levels since early March on Tuesday.
Copper, silver, and iron ore also rose but gold prices eased.
Oil futures climbed on Tuesday to settle at their highest level in about three months, thanks to those media reports that major crude producers may agree to extend output cuts scheduled to taper at the end of June.
OPEC and some non-member producers led by major producer Russia are now expected to extend their output cuts of 9.7 million barrels a day (BPD), so long as Russia agrees US media reports claimed.
Saudi Arabia has been leading talks to push for extending the cuts until the end of the third quarter.
There’s a conference call on Thursday between OPEC and non-member producers and agreement to extend the deep cuts could come then. Thursday’s call would bring forward a meeting an OPEC meeting still scheduled for June 9-10.
If no agreement is reached the cuts will then taper to 7.7 million BPD from July through the end of 2020, and 5.8 million BPD from January 2021 through April 2022.
That saw West Texas Intermediate crude for July delivery jump $US1.37, or 3.9%, to settle at $US36.81 a barrel on Nymex in New York.
In Europe, global benchmark Brent saw its August contract climb $US1.25, or 3.3%, at $US39.57 a barrel after touching an intraday high of $US39.567.
The settlements for both WTI and Brent crude were the highest for front-month contracts since March 6.
Meanwhile, gold futures gave up modest early gains on Tuesday to end lower for the second session in a row, as confidence in global stock markets pressured prices for the metal.
Comex gold for August delivery lost $US16.30, or 0.9%, to settle at $US1,734 an ounce after dipping by less than 0.1% on Monday. July silver dropped 57 cents, or 3%, to $18.26 an ounce, more than erasing the 1.8% jump the day before
Comex July copper continued its recent advance, rising 0.8% to settle at $US2.491 a pound.
Iron ore prices again remained above the $US100 a tonne on Tuesday after rising 84 US cents to $US101.32 a tonne for fines delivered to northern China.
