The Australian market is set to open higher after Wall Street rebounded sharply overnight, driven by a surge in crude oil prices and strong results from industry heavyweights.

Oil jumped above $US30 a barrel on renewed hopes of a supply deal in the Middle East.

However China’s stocks tumbled to the lowest levels in 13 months, with the Shanghai Composite Index plunging 6.4 per cent to 2,749.79 at the close.

Key numbers:

• Futures up 40 points to 4939
• AUD 70.18 US cents, 83.22 Japanese yen, 64.71 Euro cents and 48.92 British pence
• On Wall St, late, S&P 500 +1.42%, Dow Jones + 1.73%, Nasdaq +1.23%
• In Europe, Stoxx 50 +0.9% FTSE +0.59%, DAX +0.89%, CAC +1.05%
• Spot gold up 1.1% to $US1,119.70 per ounce
• Brent crude soars 5.7% to $US32.26 per barrel
• Iron ore sheds 1.2% to $US41.08 per tonne

What’s on today:

Australia CPI December quarter

Commodities:

Oil rose more than 5 per cent on Tuesday, with Brent going above $32 a barrel, on hopes OPEC and non-OPEC producers were inching closer to a deal to reduce output in the face of one of the biggest supply gluts in decades.

The Organization of the Petroleum Exporting Countries has renewed calls for rival producers to cut supply alongside its members, but Russia, seen as key to any deal, has resisted so far.

Iraqi Oil Minister Adel Abdel Mahdi said he saw “some flexibility” for a deal, an idea that has been repeatedly mooted and dismissed for more than a year.

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