Updated from 9:15 a.m. EDT
A U.S. stock market rally was spurring a tangential rally in energy commodities at the New York Mercantile Exchange on Monday.
Earlier Monday, crude oil was down sharply due to Sunday's announcement by the Organization of Petroleum Exporting Countries that it will hold crude oil production rates steady for the intermediate term.
However, strength in U.S. equity markets was recently allowing crude oil to stage a rebound. Shortly before 1 p.m., the
Dow Jones Industrial Average
was gaining 145 points at 7368.14. West Texas crude at the New York Mercantile Exchange was gaining 52 cents at $46.77 a barrel.
Distillates were mostly unchanged at $1.20 a gallon, reformulated gasoline was up 2 cents at $1.37 a gallon, and near-month natural gas was losing 4 cents at $3.89 per million British thermal units.
Ahead of the OPEC summit, analysts were leaning heavily toward an OPEC cut. As such, the decision to keep production steady was a surprise to many. This weighed heavily on energy commodities in the morning trading session.
Pressure from Saudi Arabia for its OPEC colleagues to comply with their quotas was the likely catalyst for the OPEC decision. In its attempt to stem falling prices, Saudi Arabia has cut its own production by 12% more than its allotted quota, representing nearly 160,000 barrels per day.
The least compliant OPEC members are Iran, Venezuela and Angola, according to James Williams, energy analyst at WTRG economics. Angola is by far the worst, having reduced its production by 56,000 barrels out of its 257,000-barrel reduction target.
Meanwhile, most energy stocks were rallying Monday afternoon because of the upward move in energy commodities.
was advancing 1.9% at $39 a share;
was up 1% at $63.51 a share;
was 2.2% higher at $37.17 a share;
Royal Dutch Shell
was gaining 1.8% at $46.32 a share; and
was nearly 1% higher at $67.72 a share.