Oil Price Rises Even as OPEC Boosts Output More than Expected

Oil Price Rises Even as OPEC Boosts Output More than Expected

Oil prices rose Thursday despite an agreement by major crude producers to boost output more than expected, while US stocks rallied ahead of closely-watched employment data seen as a key input to the inflation debate.

In Vienna, the OPEC+ group decided to add 648,000 barrels per day to the market in July, up from the 432,000 bpd increases in recent months, and a shift from the cartel's recent stance of sticking to a planned pace of monthly production hikes, said AFP.

"The meeting highlighted the importance of stable and balanced markets for both crude oil and refined products," the group said of the move.

The announcement came after European Union leaders agreed to ban more than two-thirds of Russian oil imports as part of a sixth package of sanctions on Moscow over the Ukraine war.

But the action by producers did not appear to be enough to calm oil markets, with futures contracts rising more than one percent.

The jump in prices reflects "doubts the cartel members can deliver on their promises," TD Securities' Bart Melek said in a note.

He who warned that oil prices could spike "well above" $120 a barrel in the peak summer period amid tight inventories, geopolitical risk and uncertainty over