Oil Scores Gains Above 4% for First Time in Three Months

Oil prices surged on Wednesday, maintaining a rising trend for the second consecutive session, following a huge drop at the beginning of the week, despite data showing another increase in crude inventories in the U.S., with markets witnessing a broader improvement in risk appetite among investors.

Brent crude futures for September delivery increased by $2.88, or 4.15%, to settle at $72.23 per barrel.

This is the biggest daily gain for Brent’s front-month contract since April 14.

Meanwhile, the West Texas Intermediate (WTI) futures for September delivery added $3.10, or 4.61%, to settle at $70.30 a barrel.

Today’s rise follows a 7% plunge in the global benchmark crude futures on Monday after the OPEC+ alliance decided to raise production by 400,000 barrels per day between August and December.

Recent losses were attributed to rising concerns about the global recovery from the coronavirus pandemic, amid an increasing number of new infections with the Delta variant of the Coronavirus.