Oil futures traded mostly higher on Tuesday, finding support on expectations for another decline in U.S. crude inventories, though worries over the spread of the delta variant of the coronavirus that causes COVID19 continued to limit upside, analysts said.

Supply continues to fall short of global demand that is recovering even amid a resurgence of COVID19 cases in key regions, said Robbie Fraser, global research analytics manager at Schneider Electric, in a daily note.

Inventory data due later this week is expected to confirm those conditions with another strong draw for U.S. crude stocks, he said.

Still, uncertainty around production by the Organization of the Petroleum Exporting Countries and its allies a group known as OPEC continues to complicate the global supply outlook in the coming months, said Fraser.

West Texas Intermediate crude for August delivery was up 7 cents, or less than 0.1, at 74.15 a barrel on the New York Mercantile Exchange, though seesawed between minor gains and losses in Tuesday dealings.

September Brent crude the global benchmark, gained 23 cents, or 0.3, to 75.39 a barrel on ICE Futures Europe after touching intraday lows under the 75 mark.

The International Energy Agency, in its monthly report, said rising coronavirus cases and its potential impact on the longplanned easing of pandemic restrictions in several wealthy countries made it harder to gauge future demand.

While there is uncertainty over OPEC, there are also concerns over…