* Dollar weakens and gold jumps above $1,000 an ounce * OPEC expected to leave output levels steady NEW YORK, Sept 8 (Reuters) - U.S. crude oil futures rose sharply on Tuesday, lifted by the slumping dollar amid concerns about inflation even as hope for economic recovery helped fuel stronger equities markets and more demand. The dollar slumped to its lowest in almost a year against a basket of major currencies as gold rallied above $1,000 an ounce, with traders citing talk of reserve diversification into gold undermining the U.S. currency. [USD/] "Still, (crude) prices have remained firm as investors continue to show a preference for tangibles, as the dollar deteriorates as a consequence of continued stimuli," Mike Fitzpatrick, vice president at MF Global in New York, said in a research note. OPEC should keep production targets unchanged when the producer group meets in Vienna on Wednesday, although it could seek to tighten compliance with existing targets, ministers and delegates said. [ID:nL8235192] Emerging market stocks hit a 2009 high, and world stocks headed firmly toward a new 2009 peak. [MKTS/GLOB] Wall Street opened stronger as higher commodity prices and a rise in merger and acquisition activity fueled hopes the economy is strengthening. [.N] "Crude and products futures rose sharply overnight as a rally in equities and a weakening dollar boosted energy markets," Addison Armstrong, analyst at Tradition Energy in Stamford, Connecticut, said in a note. Following Monday's U.S. Labor Day holiday, this week's government oil inventory report will be delayed until Thursday at 11 a.m. EDT (1500 GMT). The natural gas storage report will arrive at its normal time of 10:30 a.m. EDT on Thursday. PRICES * On the New York Mercantile Exchange at 9:50 a.m EDT (1350 GMT), October crude CLV9 was up $2.12, or 3.12 percent, at 70.14 a barrel, trading from $67.54 to $71.01. * In London, October Brent crude LCOV9 was up $2.10, or 3.16 percent, at $68.63 a barrel, trading from $66.79 to $69.47. * NYMEX October RBOB RBV9 rose 3.82 cents, or 2.15 percent, to $1.8145 a gallon, trading from $1.7529 to $1.8358. * NYMEX October heating oil HOV9 rose 4.53 cents, or 2.63 percent, to $1.7658 a gallon, trading from $1.7084 to $1.7912. * The October/October RBOB crack spread <0#RB-CL=R> was at $6.10, after ending at $6.58 on Friday. The October/October heating oil crack spread <0#CL-HO=R> was at $4.17, after ending at $4.24 on Friday. * The spread between the current front month and the five-year forward crude contract CLc61 was at $11.22, based on the October 2014 contract Friday settlement at $81.36. The spread ended Friday at $13.34. TECHNICALS NYMEX crude 10-day/20-day moving average: $69.91/$70.30 Technical support/resistance: NYMEX crude: $66.65/$71.00 NYMEX heating oil: $1.7050-$1.7885 NYMEX RBOB: $1.7595/$1.8430 MARKET NEWS * Qatar offered some extra Qatar Land crude to at least two term buyers for September and October loadings due to high stockpiles, sources said. [ID:nT108619] * Tropical Storm Fred was strengthening early on Tuesday with maximum sustained winds of 50 mph (80 kph), but did not immediately threaten any land. [ID:nN08259211] (Reporting by Robert Gibbons; Editing by Lisa Shumaker)

Source