By Mark Shenk Nov. 4 (Bloomberg) -- Crude oil rose more than $7 a barrel as the dollar dropped against the euro, increasing the appeal of commodities, and as global stock indexes advanced. Energy, metals and grains climbed as the dollar's decline prompted investors to buy hard assets as an inflation hedge. U.S. stocks gained in a presidential election-day rally after MasterCard Inc. reported better-than-estimated earnings. ``When we get a big rally, there are usually a myriad of reasons, not just one headline, and today's no different,'' said James Ritterbusch, president of Ritterbusch & Associates in Galena, Illinois. Crude oil for December delivery rose $7.23, or 11 percent, to $71.14 a barrel at 12:23 p.m. on the New York Mercantile Exchange. Futures climbed as much as $7.58 a barrel and are heading for the biggest one-day gain since Sept. 22. Prices, which have tumbled 52 percent since reaching a record $147.27 on July 11, are down 26 percent from a year ago. The dollar fell the most against the euro since the 15- nation currency's 1999 debut. The dollar declined 3 percent to $1.3024 per euro, from $1.2643 yesterday. ``The dollar is moving lower against the euro, which is supporting all of the commodities,'' said Tom Bentz, senior energy analyst at BNP Paribas in New York. ``Stock markets are up as well, giving the oil market a further push.'' The Reuters/Jefferies CRB Index of 19 raw materials climbed as much as 4.5 percent to 275.86 today, the highest since Oct. 22. The gauge lost 42 percent since reaching a record in July as the credit crunch choked worldwide growth. Sympathy Rally ``It looks like commodities are up in sympathy with the equity markets,'' said Brad Samples, a commodity analyst for Summit Energy Inc. in Louisville, Kentucky. ``The election could also be helping fuel the rally because markets loathe uncertainty.'' Prices fell yesterday after data showed U.S. manufacturing shrank last month at the fastest pace in 26 years. Signs that the nation's economic slowdown will spread to emerging markets and curb fuel demand have sent oil prices lower. ``The overriding concern is the global economic situation and what that will mean for demand,'' said Gene McGillian, an analyst at TFS Energy LLC in Stamford, Connecticut. ``We will probably test the bottom end of the range before long because of the poor economic news.'' Algeria started reducing oil production after the Organization of Petroleum Exporting Countries agreed to cut supplies, the state-run Algerian Press Service reported, citing officials it did not name. The country's energy ministry ordered state-owned oil company Sonatrach to lower output by 71,000 barrels a day, as of Nov. 1, APS said. Production Target OPEC decided at a meeting in Vienna last month to cut the production target for 11 of the group's members by 1.5 million barrels a day, from 28.8 million barrels a day. The United Arab Emirates, OPEC's fourth-largest oil producer, is implementing the supply cuts agreed on by the group and has informed consumers, Oil Minister Mohamed al-Hamli told reporters in Abu Dhabi yesterday. He declined to specify the size of the reduction. Brent crude oil for December settlement increased $6.41, or 11 percent, to $66.89 a barrel on London's ICE Futures Europe exchange. To contact the reporter on this story: Mark Shenk in New York at mshenk1@bloomberg.net.

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