Oil Update: Oil Races Past $71

(Update: Adds close-of-day prices for leading oil stocks.)

Crude oil is surging in the afternoon following more reports that Nigerian militants attacked an oil installation.

Light, sweet crude for August delivery exploded up $2.33 by the afternoon, settling at $71.49 per barrel on the New York Mercantile Exchange. Earlier in the day, the price reached as low as $68.36, but also nearly touched $72, going as high as $71.92.

According to reports, Nigerian militants said they attacked an oil platform run by Royal Dutch Shell. This marks the latest in a series of claimed incursions on crude networks in the Niger Delta.

In other oil news, this morning the International Energy Agency rewrote its earlier demand projections, saying instead that global demand for crude oil may be lower than previously thought in the coming years because of the economic slowdown.

"Whether we end up facing a supply crunch again by mid-decade or with a more comfortable buffer of supply flexibility depends largely on the pace of economic recovery and government action on efficiency," IEA Executive Director Nobuo Tanaka said in a press release.

Much of the stock market today is taking its cue from energy sector stocks, which were tracking in positive territory on the day. Shares of Exxon Mobil(XOM Quote) and Chevron(CVX Quote) helped pace the field in the afternoon, approaching the close of the market up 1.6% and 1.2% respectively. ConocoPhillips(COP Quote) approached the day's close up 48 cents at $42.10. Hess(HES Quote) gained 3 cents to $54.31 on the day.