Oil surges 4% amid better risk appetite despite weak demand outlook

Oil prices rose nearly 4 per cent on Wednesday, extending gains from the previous session as improved risk appetite provided support despite data showing an unexpected rise in US oil inventories last week and a weaker demand outlook due to rising Covid 19 infections.
 

Brent crude futures had gained $2.53, or 3.65 per cent, to $71.88 a barrel by 18.41 pm IST. US West Texas Intermediate (WTI) crude futures rose by $2.63, or 3.91 per cent, to $69.83 a barrel.
 

“Oil ... is appearing to have found support as risk appetite increases once again,” 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 on Monday following a deal in Opec+ to boost supply by 400,000 bpd each month from August through December.