ConocoPhillips Surges on Higher Crude Prices and Cost-Cutting Measures

ConocoPhillips, the largest US independent oil and gas producer, reported better-than-expected quarterly profits thanks to higher crude prices. The company's shares rose by 1.2% in premarket trading.

The surge in Brent crude prices, which averaged around $93.58 per barrel during April-June, was largely driven by geopolitical tensions in the Middle East. This increase more than offset a decline in ConocoPhillips' output to 2.25 million barrels of oil equivalent per day (boepd), down from 2.39 million boepd in the same period last year.

The company's adjusted profit for the quarter ended June 30 came in at $3.24 per share, beating analysts' average estimate of $2.88 per share. However, US oil and gas producers with assets in the Middle East faced some disruptions to operations due to the ongoing Iran war.