Oil stocks rose Monday after European leaders agreed to make their banks lend to each other again, and extra moves were announced to shore up financial institutions posing some risk to consumers.

In Norway, Norges Bank and the government agreed to offer $60 billion in state bonds to banks afraid to lend and to buy up the effectively bankrupt local business of Icelandic bank Kaupthing. Prime Minister Jens Stoltenberg appeared on television to explain Kapthing's ownership interest in a major Nordic insurer threatened ordinary Norwegians.

Action from government appeared to cheer investors and energy-focused Oslo trading soared 6.43 percent led by floating production company BW Offshore, which rose 23 percent. Oil company Det Norske Oljeselskap was up 21.21 percent in early trading on news it sold its Goliat stake.

In Europe’s less oil-focused countries, finance ministers agreed to act as Britain’s bank did a week ago. They too will take up stakes in faltering institutions, back bank's loans to each other and bolster short-term lending.

London’s FTSE 100 was trading 5.61 percent higher early Monday after Europe’s finance summit in Paris and ended the day still buoyant.

Gulfsands Petroleum PLC was up nearly 25 percent on news investor Schroders Investment Management Ltd. has lifted its stake in the U.K. based Syrian explorer to over 14 percent. On Friday, new share holdings largely failed to lift shares in London-listed companies.

BG Group, too, was up slightly despite a report Kazakh officials were meeting over a way to obtain more of the country’s giant Karachaganak oil and gas field. Premier Oil was up 4.44 percent by mid-morning U.K. time.

ws@scandoil.com writethru/cor

Tags: BG Group, Det norske oljeselskap, Gulfsands Petroleum plc