Oil turns higher, pushes world stock markets up

Thu Feb 25, 2016 4:27pm EST
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By Dion Rabouin

NEW YORK (Reuters) - Global equity markets got a boost from an upturn in crude oil on Thursday as the market focused on an upcoming meeting of major oil producers that investors hope could stabilize volatile petroleum markets.

U.S. 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 .DJI rose 212.37 points, or 1.29 percent, to 16,697.36, the S&P 500 .SPX gained 21.93 points, or 1.14 percent, to 1,951.73 and the Nasdaq Composite .IXIC added 39.60 points, or 0.87 percent, to 4,582.21.

Crude oil futures rose more than 2 percent after Venezuela reaffirmed an oil producers meeting in mid-March that would include Saudi Arabia, Russia and Qatar. Prior to the announcement, oil was down as much as 3 percent.

The sharp turn was more of "an emotional move, people thinking they're going to miss the boat," said Michael Matousek, head trader at U.S. Global Investors Inc in San Antonio, about the gains in oil.

"People are trying to stay one step ahead, thinking they know what the decision of OPEC will be."

U.S. crude futures CLc1 settled up 92 cents, or 2.9 percent, at $33.07 a barrel.

Brent crude futures LCOc1 finished up 88 cents, or 2.6 percent, at $35.29 a barrel, hitting a three-week high.   Continued...

Traders work at their desks in front of the German share price index, DAX board, at the stock exchange in Frankfurt, Germany, February 25, 2016. REUTERS/Staff/Remote