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Energy stocks lead Aust shares higher

Australian shares have made an oil-fired gain as the decision by global producers to limit production lifts the energy sector.

The benchmark S&P/ASX200 was 0.3 per cent higher at 1200 AEDT, having held on to gains in early trade in the wake of an agreement by OPEC and non-OPEC oil producers over the weekend to reduce global oil output.

Energy stocks were the best-performing sector of the market, recording a 2.9 per cent gain.

Santos was four per cent higher at $4.47, Origin was three per cent stronger at $6.74, and Oil Search was up 3.5 per cent at $7.15.

Banking stocks and the big iron ore players, BHP Billiton and Rio Tinto, were higher in morning trade, while gold was a weak point, with Newcrest Mining down 3.9 per cent to $18.20.

KEY FACTS:

* At 1200 AEDT, the benchmark S&P/ASX 200 index was up 21.7 points, or 0.39 per cent, at 5,582.3 points.

* The broader All Ordinaries index was up 23.1 points, or 0.41 per cent, at 5,638.9 points.

* The December share price index futures contract was up 25 points, or 0.5 per cent, at 5,584.0 points, with 35,600 contracts traded.

* National turnover was 1.3 million securities traded, worth $1.9 billion.