Energy Leads the Charge to Start June

An index capturing energy sector companies has been the clear winner of the day so far.

S&P 500 Energy sector index was about 1% higher by mid-day on Monday. Information Technology and Communication Services indexes logged a gain of 0.65% and 0.4%, respectively. All other sectors were marking losses for the day.

The gains comes on the back of higher oil prices. Crude Oil WTI was up 3.5% to $62.50 a barrel. The Organization of the Petroleum Exporting Countries and its allies, which controls a significant portion of the global oil supply, is hiking production. More supply of oil usually lowers prices, but the increase was less than market expectations so that’s pushing up prices. A flare-up in tensions between Russia and Ukraine was also to blame for rising oil prices.