Oil prices rose yesterday, 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, against which Nigeria’s crude is priced, rose by $2.99 to $72.34 per barrel at 7:20pm Nigerian time, having hit a session low of $68.63 per barrel.
US West Texas Intermediate crude futures rose by $3.17 to $70.37 a barrel, after falling to $66.44 a barrel.
Oil prices dropped on Monday following a deal by the Organization of the Petroleum Exporting Countries and allies, together known as OPEC+, to boost supply by 400,000 bpd each month 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 will affect demand.
JPMorgan analysts said global demand is expected to average 99.6 mbpd in August, up by 5.4 mbd from April.
