Stocks in the US started Wednesday’s session mostly stronger, with the Standard & Poor’s 500 and the Dow Jones Industrial Average reaching record intraday highs following a surge in crude futures after it was reported that officials agreed on oil production cuts at the Organization of Petroleum Exporting Countries meeting in Vienna.
The S&P 500 energy sector jumped 3.6%, posting the biggest gain among the groups. Financials also rose 1.3% while utilities shed 1.7% in the steepest decline. Chevron (CVX) jumped 2.7% and Exxon Mobil (XOM) rallied 2.3% to be among the top advancers on the Dow. The Nasdaq fell, giving back its earlier increase.
OPEC will cut oil production by 1.2 million barrels a day to 32.5 million a day, Bloomberg reported on Wednesday, citing two delegates at the Vienna meeting who were asked not to be identified as the decision wasn’t yet public.
West Texas Intermediate, the main US crude type, soared 6.6% to $$48.23 a barrel while Brent, the main international variety, jumped 7.1% to $49.69. British major BP (BP) rallied 3.5%, Italian oil firm Eni (E) gained 4.3% and Brazil’s Petrobras (PBR) surged 7.9%.