Energy stocks are taking the lead in the performance of the S&P 500 index on Tuesday, while most other sectors are experiencing losses. This shift comes after Saudi Arabia and Russia made an announcement regarding an extension of oil supply cuts.
According to FactSet data, the energy sector of the S&P 500 XX:SP500.10 saw a 0.9% increase on Tuesday, while the broader index SPX dropped by 13 points or 0.3%.
In the third quarter, the S&P 500 Energy Sector has risen by an impressive 12.3%, putting it on track to become the top-performing sector this quarter. The last time the energy sector took the lead in the index was during the fourth quarter of last year.
The official press agency of Saudi Arabia stated on Tuesday that the country will extend its production cut of 1 million barrels per day for three months. At the same time, Russia will also be extending its own crude supply cuts.
On Tuesday, West Texas Intermediate crude for October delivery CL.1, +1.15% CLV23, +1.15% saw a $1.46 increase, or 1.7%, reaching $87.02 per barrel on the New York Mercantile Exchange.
Read: U.S. Energy Stocks Rise, Leading Wall Street for First Time in a Year