Brent crude futures rose $2.93, or 4.2%, to $72.28 a barrel by 12:06 p.m. EDT (1606 GMT). U.S. West Texas Intermediate (WTI) crude futures rose $3.16, or 4.7%, to $70.36 a barrel, a 4.7 percent gain. 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.
Originally, the sell-off was exacerbated by fears that the Delta variant of the Coronavirus will lead to a recession in major markets like the United States, Japan, and Europe. If the virus is out of control, the demand for oil will be facing a big hit. "That crude oil build was obviously a surprise driven by a surge in imports and a plunge in exports," said John Kilduff, partner at Again Capital in New York. "The only positive aspects of the report remain strong gasoline demand and a rebound in distillate fuels." Crude oil demand might still be rising in 4Q21, but it hugely depends on how busy the travel season will be towards the end of the year.
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