By: Mahmoud Gamal
Mubasher: Global markets saw a positive performance on Monday amid growing oil prices, pushing investors to venture into building new positions.
Oil prices grew for the second day in a row after news that further steps will be taken to reduce oversupply.
Brent crude rose 5% or $1.68 to reach $34.69.
The world's biggest oil producers may consider "other steps" to eliminate a persistent global oversupply if a recent deal to freeze current output holds firm for several months, OPEC secretary general Abdullah al-Badri told the IHS CERAWeek conference in Houston, according to Reuters.
Such steps to resolve the main problem of oil oversupply will boost oil prices in the coming period, economist and oil analyst Ahmed Hassan Karam told Mubasher.
The U.S. crude oil increased 6% or $1.84 to reach $31.48 a barrel.
Expectations of lower U.S. shale oil production supported NYMEX crude to rise above $31.
As a result, the Dow Jones industrial average jumped 1.4% to reach 16,619.22 points, while Standard & Poor's 500 Index went up 1.44% to 1,945.38 points.
The NASDAQ composite index gained 1.47% to reach 4,750.61 points.
FTSEurofirst 300 index rose 1.7%, while the FTSE 100, Germany's DAX index and CAC 40 grew 1.5%, 2% and 1.8%, respectively.
Gold prices declined 2% to reach 1,204.30 per ounce. Meanwhile, the price of silver, platinum and palladium went up 2.1%, 2.2% and 0.1% to reach $15.02, $922.76 and $479.95 per ounce, respectively.
Commenting on gold, Karam said that its decline is normal amid the positive performance of money markets.
Transalted by: Julian Nabil
