It’s been a sharp upward assent for the Russell 2000 thus far this session. The small cap index remains at its high intraday, as a sparse docket of economic data pushed investors to focus on oil’s descent.

At 1:04 p.m. ET, the Russell 2000 (NYSE:IWM) had surged 15.90, or 2.17% to 750.20, while the Dow has turned green and is up 68.63, or 0.58% to 11,802.95.

Today’s rally comes on the heels of a robust performance on Friday. It’s good news to see that small caps haven’t plunged back into the red coming off that strong resurgence last week, but rather are adding to that. 

After flickering between the green and the red for a good portion of the session, oil has given back roughly $2 touching a low for the session of $113 and change per barrel. The commodity remains roughly 22% below record levels of nearly $148 a barrel reached in July.

An increasing consensus for slower growth in the second half that would in turn par energy consumption has taken the forefront as the catalyst for oil, driving the commodity lower.

However, traders continue to follow the latest moves surrounding the showdown between Russia and Georgia over the province of South Ossetia. Commodities traders are focusing on whether the fighting will further damage any oil infrastructure in Georgia that would in turn thwart the transportation of oil to central Asia and Europe. Reports already show that Russian bombers struck an oil pipeline in Georgia. It is stunning that oil hasn’t reacted with a violent upswing to the damaged infrastructure, as has been the typical historical behavior recently to a possible supply disruption.

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