NEW YORK (TheStreet) -- Shares of the Brazilian steelmaker Companhia Siderurgica Nacional (SID) are up 7.8% to $2.35 as Brent crude oil rose above $60 a barrel, easing concerns that there could be less demand for steel products the oil sector uses.
Steel use in the domestic energy sector could be affected by capital expenditure cuts by large oil producers like Petroleo Brasileiro Petrobras (PBR) , which reduced its refining and exploration spending last week as oil prices declined, suggesting less demand for steel products like oil country tubular goods.
Additionally, Companhia Siderurgica Nacional stock has risen over 30% since its board approved a strategic alliance between the company and a consortium of Asian partners, according to a securities filing earlier this month, Reuters reported.
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On the New York Mercantile Exchange, February Brent crude was up by 2.08% to $61.36 at 2:15 p.m. in New York. West Texas Intermediate for February delivery was higher by 3.02% a barrel to $56.93.