U.S. stocks traded more than 1 percent higher Monday, trying to build on their best weekly gain of 2016, as oil prices climbed.
The Dow Jones industrial average added 200 points in morning trade to come within 10 percent of its 52-week intraday high, out of correction territory on an intraday basis. Goldman Sachs andUnitedHealth contributed the most to gains.
The S&P 500 also traded within 10 percent of its 52-week intraday high, or out of correction, with materials, energy and financials leading gains.
WTI futures for March delivery, which expire after the settle Monday, gained more than 6 percent in morning trade after the International Energy Agency said in its medium-term outlook Monday that U.S. shale oil production was expected to fall by 600,000 barrels per day (bpd) this year and another 200,000 bpd in 2017.
The forecast added to last week's drop in U.S. oil rig count to their lowest level since December 2009, according to Reuters.
"Perhaps today's report would offer investors a little more comfort that the worst is behind us," said Jack Ablin, chief investment officer at BMO Private Bank.
"Certainly the U.S. is the swing producer and seeing the rig count fall certainly leads to this belief that production would fall," he said.
OPEC General Secretary Abdalla Salem El-Badri is scheduled to speak at the CERAWeek energy conference in Houston later on Monday.
Read Morefrom CNBC: Why This Could Be a Pivotal Week for Markets