U.S. small-capitalization stocks rose on Tuesday, outpacing their larger counterparts, led by gains in the energy sector as oil futures surged higher.

Oil futures set a new intraday record of $126.98 amid concerns that Iran is mulling a production cut, and heating oil-futures - which also reached an all-time high – sent small-cap energy stocks higher across the board.

Among the notable gainers, Lufkin Industries rose 4.94, or 6.4%, to 82.29 while Tetra  Technologies gained 90 cents, or 4.9%, to 19.30 and, trading on the New York Stock Exchange, Swift Energy added 2.50, or 4.5%, to 57.80.

For the session, the Russell 2000 index of small-capitalization stocks rose 3.62 points, or 0.49%, to 736.85, while the Standard & Poor's SmallCap 600 increased 2.93 points, or 0.76%, to 388.49.

The Russell 2000 is up for the fourth straight day and five of the last six sessions.

Tuesday's gains added to the surge in small-cap stocks on Monday, when both the Russell 2000 and S&P Small Cap 600 reached their highest levels since Jan. 3. Ryan Jacob, portfolio manager for the Jacob Internet Fund, said recent economic data, including retail sales numbers released Tuesday, helped to keep a floor in the market.

Consumer discretionary stocks were up broadly on the retail sales report. Finish Line rose 36 cents, or 5.9%, to 6.43 and Zumiez gained 1.03, or 5.1%, to 21.08.

 Financials were the only small-cap names that finished in the red. Pawn-shop operator First Cash Financial fell 1.61, or 9.7%, to 14.98, leading the declines in the sector, while UCBH Holdings lost 44 cents, or 6.3%, to 6.56.