European equity benchmarks were advancing in early trade on Tuesday as a modest increase in oil prices provided a fillip to commodities stocks and manufacturers posted gains.
West Texas Intermediate crude oil, the main US oil benchmark, was 0.5% higher at $46.59 per barrel while Brent crude, the international gauge, was up by the same amount at $48.85 per barrel recently. The gains come the morning after members of the Organisation of Petroleum Exporting Countries (OPEC) convened a meeting at which Saudi Arabia's energy minister unveiled plans to cut Saudi Arabia's oil output next month.
Khalid al-Falih, Saudi Arabia's energy minister, reportedly said that the country - which is the world's largest oil producer- would limit its exports at 6.6 million barrels a day in August as well as cutting its production, according to news reports. His comments and the meeting come seven months after OPEC members agreed to curb output in a bid to support a recovery in oil prices.
In equities, Informa, a publishing and events company, was leading the gainers on London's FTSE 100 Index, up by 5.7%, miners Anglo American, Antofagasta and BHP Billiton were 4.9%, 2.7% and 2.4% higher, respectively, while Segro, a real estate investment trust, was up by 3.7%.
On Frankfurt's DAX, semiconductor manufacturer Infineon was 0.9% higher, airline operator Lufthansa was up by 0.8% and Commerzbank was 0.5% higher. Thyssenkrupp, a diversified industrial company, was up by 0.4%. And, on Paris' CAC-40, Essilor, an ophthalmic optics company, was up by 1.6%, Accor,a hotel operator, was 1.3% higher and Valeo, an automotive supplier, was up by 1.0%.
The pan-European Stoxx 600 Index was 0.34% higher, London's FTSE 100 Index was up by 0.61% and Frankfurt's DAX was 0.35% higher. Paris' CAC-40 was up by 0.56% at the time of writing.
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