During the pre-market trading session on Monday, Shell PLC (NYSE:SHELL) and Occidental Petroleum Corp (NYSE:OXY) climbed 1.75% and 1.41%, respectively, whereas Exxon Mobil Corp (NYSE:XOM) and Chevron Corp (NYSE:CVX) climbed 0.88% and 0.85%, each oil prices witnessed more than 3% surge on Monday. This was because the OPEC+ group decided to maintain the output increase for July, mirroring the hikes of the previous two months.

What Happened: Brent crude futures escalated by 2.95%, to $63.22 a barrel. Concurrently, U.S. West Texas Intermediate crude saw an increase of 3.49%, to $62.90. OPEC and its allies, known as OPEC+, have agreed to raise oil production by 411,000 barrels per day in July--marking the third straight month of increases at this volume, reported Reuters.

OPEC and its allies, known as OPEC+, have agreed to raise oil production by 411,000 barrels per day in July--marking the third straight month of increases at this volume. Sources close to OPEC+ talks hinted that the organization could discuss a larger increase. Oil traders had already factored in the 411,000 bpd increase to Brent and WTI futures.

Meanwhile, Kazakhstan has notified OPEC of its refusal to cut oil production, according to Russia’s Interfax news agency. Analysts say this, combined with a decline in market share, has left OPEC+ with limited options.

SEE ALSO: Ross Ulbricht, The Silk Road Founder Pardoned By Trump Soon After His Inauguration, Receives A Whopping $31 Million Worth Of Bitcoin In Donation Wallet

Why It Matters: This decision by OPEC+ comes at a time when the global oil industry is witnessing significant changes. For instance, reports highlighted an ongoing battle between Chevron Corp and Exxon Mobil Corp for a share of one of the world’s most coveted oil finds in Guyana. This fight, centered around Hess Corp’s 30% interest in a massive Guyanese oil project, could potentially impact some of the largest energy ETFs available.

Despite the ongoing oil war, the decision to keep output levels steady has led to a surge in oil prices. This could have implications for the wider energy market.

• READ MORE: Xi Jinping’s China Dismisses Trump’s ‘Groundless’ Accusations On Geneva Trade Deal Breach, Vows Strong Retaliation

Image via Shutterstock

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.