Oil price hits two-year high as OPEC sees more demand

The price of oil was on course Tuesday to close above $70 a barrel for the first time in two years on investors’ optimism that improving oil demand and a dwindling supply glut may mean the market can absorb any additional supply from OPEC and its allies.

Brent crude, the international energy benchmark, rose 2.6% to $71.09 a barrel. It is on track for its highest close since May 2019. West Texas Intermediate futures gained 3.5% at $68.61 a barrel. The U.S. gauge on Tuesday crossed its highest level since October 2018.

Members of the Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, on Tuesday agreed to continue relaxing curbs on oil production, signaling their confidence in improving oil demand and a drop in the global supply glut.