Oil 13-Year Low, Oil prices rallied on Friday, rebounding from a 13-year low the previous day, on speculation of production cuts among some of the world’s biggest suppliers.
Light, sweet crude for March delivery settled up $3.23, or 12.3 percent, to $29.44 a barrel on the New York Mercantile Exchange, its largest percentage gain in seven years. Brent, the global benchmark, gained $3.02, or 10.1 percent, to $33.08 a barrel on ICE Futures Europe. Both benchmarks are still down for the week.
Oil prices had already been higher but pushed to larger gains after the Baker Hughes weekly survey showed that U.S. weekly oil rigs had declined by 28 rigs to 439.
In the broader market, m ajor stock indexes posted weekly losses, putting a damper on a rally Friday in recently battered commodities and banking shares. The gains snapped a five-session losing streak for the Dow industrials and came on the heels of a particularly rough day for global stocks.
The Dow Jones Industrial Average rose 313.7 points, or 2 percent, to 15973.84 on Friday, ending the week down 1.4 percent. The Dow has fallen 8.3 percent so far this year. The Standard & Poor’s 500 index rose 35.7 points, or 2 percent, to close at 1,864.78. The Nasdaq Composite rose 70.7 points, or 1.7 percent, to close at 4,337.51.
Now nearly halfway through the month of February, traders and analysts are increasingly questioning when the stock market turmoil, which many believed would be short-lived, will end.