Oil prices rise as global equity markets rally

Crude oil prices rose on Wednesday as a rally in major stock markets revived investor sentiment.

By 10:25 am Riyadh local time, Brent Crude futures were up 1.16 percent to $76.79 a barrel, while WTI crude futures were higher by 0.98 percent to $66.83 a barrel.

Asian stocks are trading higher on Wednesday, with the Shanghai composite up 1.35 percent, while Hong Kong's Hang Seng Index is up 1.18 percent.

On Tuesday, the Dow Jones Industrial Average rose more than 400 points, while the S&P 500 and the tech-heavy Nasdaq Composite rose more than 1.5 percent each.

“Oil prices picked up in the morning session in Asia, despite the US, Russia and Saudi Arabia pledging to raise crude output just days before sanctions against Iran take effect," said Vijay Valecha, Chief Market Analysis, Century Financial.  

"Even though Saudi Arabia has promised to make up for any shortfall, it is doubtful on whether it would be able to handle any unexpected disruption from Nigeria, Venezuela or Libya. Moreover, a pick-up in equities also is one of the major factors which has improved sentiments in the oil market."