U.S. oil closed at 2016 highs on Tuesday after a report that top producers Russia and Saudi Arabia have agreed to freeze output ahead of a much-anticipated producers meeting on Sunday.

And if oil does seem to have finally snapped out of its long funk and is destined to remain above $40, Zacks Equity Research recently spotlighted five exchange-traded funds (ETFs) investors should embrace:

• Leveraged Oil – Direxion Daily Energy Bull & 3x Shares (ERX): "This fund creates a triple (3x or 300%) leveraged long position in the S&P Energy Select Sector Index," Zacks said. "It is a popular and liquid option in the energy leveraged space."
• Energy E&P – SPDR S&P Oil & Gas Exploration & Production ETF (XOP): "This fund holds 60 oil and gas exploration and production stocks in its portfolio. It is well diversified across its holdings with none of the companies accounting for more than 2.25% of total assets," Zacks said.
• Russia – Market Vectors Russia ETF (RSX): "RSX is the most popular and liquid option in the space with an asset base of $1.90 billion and average trading volume of more than 13 million shares a day," Zacks said.
• Norway – Global X MSCI Norway ETF (NORW): "Norway is among the top 10 nations among oil exporter and forms an integral part of the country’s GDP. The most popular way to play the country is with NORW," Zacks said.
• Canada – iShares MSCI Canada ETF (EWC):  "Canada is also among the world’s top oil producers. The best way to invest in Canada is through the iShares MSCI Canada ETF, a product that has nearly $2.59 billion in assets. The fund holds just under 95 stocks in its basket," Zacks said.

Meanwhile in the oil patch itself, Russia's Interfax news agency quoted a diplomatic source in Doha saying that Russia and Saudi Arabia reached a consensus on Tuesday about an output freeze and that the final decision will not depend on Iran, Reuters reported.

On the charts, both Brent and WTI broke through resistance at the 200-day moving average, which stood at $43.53 and $41.04 respectively. A move above this, plus the narrowing Brent contango, could lead to further gains, Reuters explained.

Brent crude futures were up $1.86, or 4.3 percent, at $44.69 a barrel. U.S. West Texas Intermediate (WTI) settled at $42.17, up 4.48 percent, or $1.81, a 2016 high and the best settlement since November.

"People are now realizing that this OPEC meeting could be a historic turning point for the market," said Phil Flynn, an analyst at Price Futures Group. "Now, with U.S. production cuts, our sense is that we're entering a new cycle upwards."

(Newsmax wire services contributed to this report).

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