US stocks, led by the energy sector, jumped with oil prices after a report that the Organisation of Petroleum Exporting Countries agreed to limit production in November.
The energy sector gained 3.9%, the most among the S&P 500’s 11 sectors at 2:28 p.m. ET. The benchmark index is up 8 points (0.39%), the Dow is up 89 points (0.48%), and the Nasdaq is up 6 points (0.13%).
Reuters reported, citing sources, that the oil group could announce a deal on Wednesday at the informal meeting in Algiers. However, details may only be concluded at the formal meeting in November.
An agreement to curtail production among some of the world’s largest oil producers could lower the glut so that supply is more in line with demand. The excess supply of oil was mainly responsible for the oil-price crash that began in 2014.
Brent crude oil, the international benchmark of oil prices, gained nearly 6% to $49.32 per barrel. West Texas Intermediate crude futures, used in the US, jumped 5% to an intra-day high of $46.92 per barrel in New York.
Exxon shares rose 4%. Chesapeake Energy increased 6%, while shares of Murphy Oil Corporation gained 7%.