Stocks and crude oil are rallying (AAPL, USO, WTI, OIL, VDE, SPX, SPY, DJI, IXIC, BNO)

Stocks and crude oil rallied in trading on Monday.

The major indexes shot to the best levels of the session near 2:12 p.m. ET. The Dow was up 203 points (1.16%), the S&P 500 was up 23 points (1.14%), and the Nasdaq was up 64 points (1.36%). Stocks closed at their lowest level in a month on Friday. 

Apple shares gained the most on the Dow, by 3% after Berkshire Hathaway disclosed that it owned a $1 billion stake in the company as at the end of the first quarter. 

West Texas Intermediate crude futures in New York and Brent crude — the international benchmark — both gained more than 3%. 

The two headlines you need to know are: Nigerian production has fallen to the lowest level in decades after several militant attacks on infrastructure. And, Goldman Sachs analysts say the oil market has turned from a dire overflow to a deficit much sooner than they had thought. 

Brent crude climbed above $49 per barrel, while WTI rose to as high as $47.85, the highest level since October. Investing.comIn economic data, the Empire State Manufacturing index plunged to -9.02 for May from a 15-month high of 9.56, as business conditions unexpectedly got worse. 

And, the National Association of Homebuilders' housing market index held at 58 for a fourth straight month. 

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