Oil prices rose on Wednesday, extending gains from the previous session as improved risk appetite provided support despite data showing an unexpected rise in U.S. oil inventories last week and a weaker demand outlook due to rising COVID19 infections.

Brent crude futures gained 1.08, or 1.5, to 70.42 per barrel, having hit a session low of 68.63 a barrel.

U.S. West Texas Intermediate WTI crude futures rose 1.04, or 1.55, to trade at 68.24 a barrel, after falling to 66.44 a barrel earlier on Wednesday.

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 the Delta variant …, as well as the agreement between OPEC countries to increase production, he added.

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 selloff 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.

A potential rise in U.S. inventories weighed on prices earlier in the session.

U.S. crude stocks rose by 806,000 barrels for the week that ended July 16, according to two market sources, citing American Petroleum…