Oil Jumps to 2-year High on Higher Demand Expectations

Oil prices rose about 2% to their highest in more than two years on Tuesday, pushed by expectations that demand will recover quickly in Q2 of 2021.

Brent crude rose $1.13, or 1.6%, to settle at $73.99 a barrel. The global benchmark during the session hit $74.07 a barrel, its highest since April 2019.

US oil rose $1.24, or 1.8%, to settle at $72.12 a barrel, to settle at 72.12 dollars a barrel, its highest since October 2018.

To boost prices, the world's largest oil producers said on Tuesday they expect oil prices to stay above $70 with demand expected to return to pre-pandemic levels in Q2 of 2022.

"Oil could be moving between $70-$80 per barrel for the remainder of 2021 based on the expectation that OPEC+ will maintain supply discipline, even as Iran's exports may resume if U.S. joins a nuclear deal," Vitol CEO Russell Hardy.

Jeremy Weir, CEO of Trafigura said that there is a good chance that prices could reach $100 a barrel due to declining reserves before global demand reaches demand peak.