Oil giant Shell announced plans on Tuesday to cut costs and further synergies in order to make its planned $70 billion takeover of BG Group work with oil prices at the mid-$60s-a-barrel level. Shares of Shell and BG Group both closed sharply higher, up over 3.5 and 2.6 percent respectively.
Oil prices jumped 2 percent around Tuesday's close, following the news of a strike from oil workers in Brazil, one of the world's biggest oil producers. Brent was up over 2 percent at $49.74 around the close, while U.S. crude was at $47.20. Oil stocks soared on the back of this, with Seadrill and Subsea 7 finishing up over 6 and 4 percent respectively.
Oil and gas exploration firm, Tullow Oil soared over 17.5 percent at the close, with traders citing merger talk and news on the TEN oil project as reasons for the jump, according to Reuters.
In global markets, U.S. stocks were mostly higher Tuesday, as investors awaited key economic reports and Fed speakers later in the week.
In Asia, most equities advanced on Tuesday, however, markets in China fell short amid jitters surrounding a crackdown on illegal futures trading and ongoing anti-corruption investigations into certain companies.