US stocks open higher as oil rebounds

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New York, Feb 22 (IANS) US stocks opened higher on Monday as a strong rebound in oil prices boosted Wall Street sentiment.

Oil prices traded sharply higher in early trading Monday, with the US oil surging about 6 percent, as the International Energy Agency said US shale oil production was expected to fall by 600,000 barrels per day (bpd) this year and another 200,000 bpd in 2017.

On Friday, oil prices suffered big losses after government data showed a rise in US crude stockpiles.

Also, the market got support following a broad-based rally in global stock markets.

In Asia, Chinese shares regained the 2,900-point mark on Monday, after the appointment of a new regulator head on Saturday. The benchmark Shanghai Composite Index surged 2.35 percent to close at 2,927.18 points.

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European equities also traded sharply higher buoyed by the solid gains in commodity prices.

Shortly after the opening bell, the Dow Jones Industrial Average rose 93.48 points, or 0.57 percent, to 16,485.47. The S&P 500 added 12.78 points, or 0.67 percent, to 1,930.56. The Nasdaq Composite Index gained 43.23 points, or 0.96 percent, to 4,547.65.

On Friday, US stocks closed mixed after wavering in a tight range, as investors digested the country’s consumer price data amid a plunge in oil prices.

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