Crude %Oil prices are up 4% on news OPEC+ is raising its production at a steady rate, and as the war between Ukraine and Russia intensifies.
Brent crude oil, the international standard, is trading at $65.20 U.S. per barrel, while West Texas Intermediate (WTI) crude oil is trading at $63.43 U.S. a share.
The rise in energy prices is giving a boost to the stocks of oil majors such as %ExxonMobil (NYSE: $XOM), %Chevron (NYSE: $CVX), and %Shell (NYSE: $SHEL).
The eight countries that make up the OPEC+ cartel, which is led by Saudi Arabia, have agreed to increase production by 411,000 barrels per day in July, the third consecutive month the group has boosted its output at that rate.
News of the latest production increase has eased investor fears that OPEC+ might boost its output even faster.
At the same time, the Russian-Ukraine war has intensified geopolitical uncertainty and threatens to upend crude oil production in the two nations, potentially disrupting global supplies.
Moscow pounded Ukraine with missiles and drone attacks in recent days before a new round of peace talks are set to get underway in Istanbul, Turkey.
For its part, Ukraine said one of its drone attacks destroyed more than 40 Russian planes deep in Russia’s territory.
At the same time, the global bond market remains jittery, with U.S. Treasury yields continuing to inch higher, potentially sending investors into alternative asset classes and giving crude a boost.
