Oil price revival boosts stocks

Crude oil futures rose more than 2 per cent after Venezuela reaffirmed an oil producers' meeting in mid-March that would include Saudi Arabia, Russia and Qatar. Photo / iStock

Global equity markets have received a boost from an upturn in crude oil as the market focused on a forthcoming meeting of major oil producers that investors hope could stabilise volatile petroleum markets.

US stock indexes were also buoyed by robust data on durable goods orders that pointed to a recovery in the struggling manufacturing sector.

The Dow Jones industrial average yesterday rose 212.37 points, or 1.29 per cent, to 16,697.36, the S&P 500 gained 21.90 points, or 1.13 per cent, to 1951.7 and the Nasdaq Composite added 39.60 points, or 0.87 per cent, to 4582.21.

Crude oil futures rose more than 2 per cent after Venezuela reaffirmed an oil producers' meeting in mid-March that would include Saudi Arabia, Russia and Qatar. Before the news, oil was down as much as 3 per cent.

The sharp upturn was more of "an emotional move, people thinking they're going to miss the boat", said Michael Matousek, head trader at US Global Investors in San Antonio. "People are trying to stay one step ahead, thinking they know what the decision of Opec will be."

US crude futures settled up US92c, or 2.9 per cent, at US$33.07 a barrel. Brent crude futures finished up US88c, or 2.6 per cent, at US$35.29 a barrel, a three-week high.

European equity markets rose yesterday, rebounding from this week's losses that had been spurred by fears of Britain exiting the European Union.

Europe's FTSEurofirst 300, which has lost almost 4 per cent since Wednesday, was up 2 per cent as risk appetite returned.