Oil Prices Turn Higher Despite Surprise Build in US inventories

Oil prices reversed upwardly and continued achieving gains for the second session in light of the growing risk appetite, despite data showing a sudden increase in US crude stocks last week and a decrease in demand expectations due to the growing infection cases with the Covid-19 virus.

Brent crude futures rose 84 cents, or 1.2 percent, to $70.19 a barrel at 0840 GMT, after falling during the session to $68.63 a barrel. US West Texas Intermediate crude contracts also rose 84 cents, or 1.3 percent, to record $ 68.04, after falling to $ 66.44 earlier in the day.

“Oil … appears to have found support as risk appetite grows again,” said Ricardo Evangelista, an analyst at ActivTrades. But, he added, “This support follows the significant declines recorded during the past few sessions, which were sparked by concern about the impact of the delta mutator, as well as the agreement of the OPEC + countries to increase production.”

Oil prices fell on Monday after the Organization of the Petroleum Exporting Countries and its allies, known as the OPEC+ group, agreed to increase supply by 400,000 barrels per day each month from August to December.

The decline was exacerbated by fears that rising cases of the Delta strain of the Coronavirus would affect demand in key markets such as the United States, Britain, and Japan.