Oil Rises to 2-Month High as Europe, US Reopen Economies

Oil rose on Tuesday to hit $70 a barrel for the first time since March, as expectations of demand recovery following reopening of the European and US economies offset concern over spreading coronavirus cases in Asia.
The British economy reopened on Monday, and Europe is starting to reopen cities and beaches. New cases in the United States continued to fall and New York lifted the mask requirement for vaccinated people, CNBC reported.
Brent crude was up 55 cents, or 0.8%, at $70.01, trading above $70 for the first time since March 15. US West Texas Intermediate crude was up 37 cents, or 0.6%, at $66.64.
"Economies are again switching a gear higher," said Tamas Varga of broker PVM. "The euphoria is reflected in the general belief that the economic revival will be soon coupled with oil demand recovery."
The latest gain to $70 brings Brent's rally this year to 35%, supported by supply cuts by OPEC and allies. This could lead to a further advance, some analysts said.
"A rise through $70 should trigger more systematic buying and see it advance to $71.50 a barrel quite quickly," said Jeffrey Halley, analyst at brokerage OANDA.
European and US progress in the battle against the pandemic contrasts with the situation in Asia, which is limiting oil's rally.