KONTAN.CO.ID - NEW YORK. Oil prices rose more than 4% Wednesday, extending gains from the previous session as improved risk appetite provided support despite data showing an unexpected rise in U.S. oil inventories. Brent crude futures rose $2.88, or 4.2%, to settle at $72.23 a barrel. U.S. West Texas Intermediate (WTI) crude futures rose $3.1, or 4.6%, to settle at $70.30 a barrel. Futures are rebounding after dropping around 7% on Monday, following a deal by the Organization of Petroleum Exporting Countries and allies, together known as OPEC+, to boost supply by 400,000 barrels per day from August through 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 would affect demand. "Overall the OPEC agreement has crystallized what the market should expect as to the restoration of production," said Andy Lipow, president of Lipow Oil Associates. "However, even according to OPEC+ numbers, it's not enough to stem the overall world oil inventory decline, and to me, that is giving support to the market." Read Also: Indonesia to expand coronavirus testing in urban areas before easing curbs