(Bloomberg) -- For energy stocks, Saudi Arabia's ambition is the most powerful positive signal since an output cut by the world's major producers.
The Energy Select Sector SPDR Fund surged as much as 3.8 percent, on track for its biggest gain since OPEC and Russia agreed to curb crude production on Nov. 30, 2016.
Front-month Brent and West Texas Intermediate futures are up more than 3 percent on Tuesday in New York following a Bloomberg report that Saudi officials are aiming for an oil price around $80 per barrel to fund their fiscal agenda and set the stage for a successful initial public offering of state-owned Aramco. Crude surged past $65 a barrel.
To contact the reporter on this story: Luke Kawa in New York at lkawa@bloomberg.net.
To contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Dave Liedtka, Randall Jensen
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