The higher oil prices stemming from OPEC’s agreement to cut crude production should give some banks a boost.
.. In particular, higher oil prices could mean that banks will release some of the reserves they set aside earlier this year to protect themselves against soured energy loans. Such releases would increase banks’ earnings.
.. Bank of America Corp. rose more than 4% on the day, Wells Fargo—2%, J.P. Morgan Chase & Co.—1.6% and Citigroup Inc.—1.6%.
.. Fifteen of the largest U.S. banks amassed a combined $6 billion in reserves for energy loans, according to a Barclays analysis.