US oil stocks rebound after OPEC meeting

US oil prices rebounded on Tuesday after OPEC agreed to increase production to keep global oil supply stable and curb the growth of global oil demand.

US crude rose 3 cents to $49.79 a barrel on the New York Mercantile Exchange.

The Dow Jones Industrial Average rose 2.6 percent to 26,534.94.

The dollar index was down 0.3 percent to 97.94 yen.

Oil markets have been roiled by the decline of demand for crude, as a glut of supplies has made gasoline more expensive and gasoline is the world’s biggest source of transportation fuel.

The OPEC meeting will focus on reducing output and stabilizing global oil supplies, but it will not produce a deal on how to prevent the global economy from slowing further, OPEC chief Ali al-Naimi said in a statement.

The United States and China are the biggest producers of oil in the world.

OPEC members have been trying to agree on a long-term deal on a new oil price, but they are unlikely to reach an agreement this year. 

The Organization of the Petroleum Exporting Countries has agreed to cut production by up to half by 2030, but OPEC members including Saudi Arabia, Venezuela and the United Arab Emirates have said they will keep pumping.

The Saudi government has been trying for several years to get oil prices to return to their levels before the 2008 financial crisis.

The country has cut production to reduce costs, but prices have not returned to pre-crisis levels.

Oil prices have been trading around $50 a barrel since the beginning of the year, according to data from Bloomberg.

OPEC said last week that it was expecting to meet next week to try to reach a long term agreement on output and a price.