* Energy stocks up on rise in oil above $65

* Worries about Treasury yields ease

* Dow up 1.3 pct; S&P up 1.5 pct, Nasdaq up 1.2 pct

* For up-to-the-minute market news click [STXNEWS/US] (Updates with GM shares ending down in paragraph 12)

By Caroline Valetkevitch

NEW YORK, May 28 (Reuters) - U.S. stocks climbed more than 1 percent on Thursday as higher oil prices drove up energy shares and falling yields in the bond market eased concerns that higher borrowing costs would hinder economic recovery.

Energy company shares, including Exxon Mobil Corp (XOM.N: Quote, Profile, Research), rose as U.S. crude oil settled above $65 a barrel for its highest close since November, 64boosted by a drop in crude inventories last week.

"We had the OPEC meeting today, plus we had inventory numbers, and both were favorable for oil. That's helping that whole sector," said Owen Fitzpatrick, head of U.S. Equity Group at Deutsche Bank Private Wealth Management in New York. OPEC decided to hold production at current levels.

The Dow Jones industrial average .DJI gained 103.78 points, or 1.25 percent, to finish at 8,403.80. The Standard & Poor's 500 Index .SPX was up 13.77 points, or 1.54 percent, at 906.83. The Nasdaq Composite Index .IXIC was up 20.71 points, or 1.20 percent, at 1,751.79.