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Brent rose 83 cents, or 1.2%, to $71.08 a barrel by 1121 GMT.
U.S. West Texas Intermediate (WTI) crude was up 69 cents, or 1%,
at $68.41.
"The strong demand dynamics and likely delays in the Iran
nuclear deal negotiations pushed oil prices above the
much-watched $70 per barrel level," said Norbert Rucker, analyst
at Swiss bank Julius Baer.
"We expect oil prices to move well beyond $70 per barrel towards
mid-year."
Expecting a recovery in demand, the Organization of the
Petroleum Exporting Countries (OPEC) and its allies, together
known as OPEC+, agreed on Tuesday to keep to their plan for a
gradual easing of supply curbs through July.
The OPEC+ meeting took only 20 minutes, the shortest in the
group's history, indicating the unity among its members and
their confidence in the market's recovery, analysts said.
OPEC+ data shows the group is now more upbeat about the pace of
rebalancing in the oil market than it was a month ago.
Saudi Energy Minister Prince Abdulaziz bin Salman said there has
been solid demand recovery in the United States and China and he
believes that the pace of COVID-19 vaccine rollouts can only
lead to further rebalancing of the global oil market.
"The market is optimistic that growing summer travel and
reopening economies will easily accommodate additional OPEC+
production increases and even a possible Iranian return to the
market," said Stephen Brennock of oil broker PVM.
Analysts also say that the slow progress of Iran nuclear talks
provides breathing room for demand to catch up before Iranian
oil returns to the market.
Diplomats said the meeting will wrap up the latest round of
talks and adjourn discussions for at least a week.
"The delay is pushing the threat of another 2 million barrels
per day of oil (returning to the market) to later in the year,
when further economic growth should buffer its impact," ANZ
Research analysts said in a note.
(Reporting by Bozorgmehr Sharafedin in LondonAdditional
reporting by Shu Zhang in Singapore and Sonali Paul in
MelbourneEditing by David Goodman)
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