Oil prices have risen, extending gains from the previous session as improved risk appetite provided support despite data showing an unexpected rise in US oil inventories and a weaker demand outlook due to rising COVID-19 infections.
Brent crude futures gained 97 cents, or 1.4 percent, to $70.32 a barrel at 1136 GMT, having hit a session low of $68.63 a barrel.
US West Texas Intermediate (WTI) crude futures rose by 87 cents, or 1.3 percent, to $68.07 a barrel, after falling to $66.44 a barrel earlier.
Ricardo Evangelista, ActivTrades analyst, said: “This support comes after the pronounced falls registered during the last few sessions, which were triggered by apprehension over the impact of the Delta variant, as well as the agreement between OPEC+ countries to increase production.”
Oil prices dropped following a deal by OPEC+ to boost supply by 400,000 bpd each month from August to December. The sell-off was exacerbated by fears that a rise in cases of the Delta variant of the coronavirus in major markets like the United States, Britain and Japan will affect demand.
A potential rise in US inventories weighed on prices earlier in the session.
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