Energy stocks gains on OPEC deal

Emerging market energy stocks gained as the OPEC agreement to cut production signaled a rally in high-risk assets.

The MSCI Emerging Markets Energy Index gained 1.8 per cent on the OPEC news, a deal which ex expected to add $10 a barrel to oil prices.

“This should help put a floor on oil prices, which is good for overall risk sentiment. There is still a window for the emerging-market rally to continue,"said Christopher Shiells, a senior emerging-markets analyst at Informa Global Markets Ltd.

OPEC agreed to reduce production to between 32.5 million and 33 million barrels per day, announced Iran's Oil Minister Bijan Namdar Zanganeh after the cartel's meeting in Algiers.

GCC stocks gained 1.2 per cent on the news, led by 1.6 per cent in the Kingdom of Saudi Arabia.


Read more at Bloomberg.