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Brent crude was up by 52 cents, or 0.7%, at $73.38 a barrel by
1028 GMT, close to a late April 2019 high. U.S. oil gained 49
cents, or 0.7%, to $71.37 a barrel, near a 32-month high
"We regard the continuing good news on the demand front and
upbeat sentiment on the financial markets as the key reasons for
the latest upswing," Commerzbank said.
The head of trading house Vitol sees oil prices moving between
$70-$80 a barrel this year on the expectations that OPEC+ will
keep its supply discipline.
"We have had those stock draws for a couple months, the market
is heading in the right direction ... my impression it is not a
super cycle," Russell Hardy told the FT Commodities Global
Summit.
Members of the Organization of Petroleum Exporting Countries
(OPEC) along with major producers including Russia - a group
known as OPEC+ - have been gradually easing record output cuts
in recent months.
"Continuous supply deficit is as good as guaranteed for the
coming six months even if OPEC and its ten allies decide to
further ease supply constraints after July to meet at least part
of the rising demand," brokerage PVM oil said.
Investors and traders are also watching the outcome of a two-day
U.S. Federal Reserve meeting that starts later on Tuesday for
signals on when it will start to scale back monetary stimulus,
he said.
The Fed is getting ready to starting debating how and when to
start tapering a massive asset-purchase program that helped
support the U.S. economy during the pandemic.
In Britain, the end of COVID-19 restrictions were delayed from
June 21 by a further four weeks.
(Additional reporting by Aaron Sheldrick in Tokyo. Editing by
Jane Merriman)
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