Oil is recovering with the opening of the economies of America and Europe
LONDON (Reuters) - Oil prices reached $ 70 a barrel on Tuesday for the first time since March, amid hopes for a recovery in demand after the resumption of economic activities in the United States and Europe, offsetting fears of an increase in Covid-19 infections in Asia.
The British economy reopened on Monday, and Europe began to reopen cities and beaches. The number of new infections continued to decrease in the United States, and New York raised the requirement to wear a muzzle for those who received vaccines.
Brent crude rose 24 cents, or 0.4 percent, to $ 69.70 by 11.25 GMT, and earlier it hit $ 70 for the first time since March 15. US West Texas Intermediate crude rose 32 cents, or 0.5 percent, to $ 66.59 a barrel.
"Economies are picking up again ... this enthusiasm takes the form of a general perception that the economic recovery will soon be accompanied by a recovery in oil demand," said Tamas Varga of BVM brokerage.
By recording $ 70, Brent's earnings this year would reach 35 percent, supported by cuts in supplies to the Organization of the Petroleum Exporting Countries and its allies. Some analysts say this could lead to more price rises.
"A rise to $ 70 will lead to more regular buying and will bring the price per barrel to $ 71.50 very quickly," said Geoffrey Haley, an analyst at Oanda.
