Crude futures rose around $1 in midday Tuesday trade, on track for a second consecutive daily rally, lifted by a resurgence in geopolitical tensions as the war between Russia and Ukraine ratcheted up.

At noon ET, July Nymex West Texas Intermediate crude futures rose around $1.25 to $63.75/bbl and August WTI was $1.20 higher at $62.75/bbl. August Brent crude was $1.05 higher at $65.70/bbl and September Brent increased by $1.15 to $65/bbl.

On Monday, both oil benchmarks surged $2-3 after Ukraine sent drones to attack military airfields and destroyed Russia's bomber fleet deep inside the country.

In recent weeks, Russia struck Ukraine with an avalanche of missiles and drones, as the 40-month-old war is showing no signs of ending anytime soon.

In refined product futures, diesel outperformed gasoline. The July ULSD contract was up about 4.95cts at $2.094/gal, and August ULSD increased by 4.65cts to $2.085/gal. July RBOB futures gained 2.65cts to around $2.079/gal and August RBOB was 2.7cts higher at $2.055/gal.

A stronger U.S. stock market also indicated higher investor appetite for riskier assets like equities and energy commodities, which underpinned petroleum futures.

Energy traders largely shrugged off an anticipated OPEC+ announcement over the weekend to increase the group's production by 411,000 b/d in July. Some analysts had expected OPEC+ to boost even more output as the oil cartel winds down previously announced production curbs to prop up oil prices.

In the spot market, San Francisco prompt June CARBOB gasoline was largely flat, while other cash products tracked Nymex futures movements. Still, San Francisco physical gasoline and diesel remained the priciest across the U.S., reflecting recent planned and unplanned refinery issues in Northern California.


This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.


--Reporting by Frank Tang, ftang@opisnet.com; Editing by Michael Kelly, mkelly@opisnet.com


(END) Dow Jones Newswires

06-03-25 1253ET