Oil rallies above $67 as demand optimism outweighs Iran supply concerns

Oil extended gains from the highest close in more than two years as optimism over burgeoning U.S.-led demand outweighed concern that Iranian supplies will jump should sanctions on official exports be lifted.

West Texas Intermediate rose 0.5% in early Asian trading after settling at the highest finish since October 2018. With the U.S. economy recovering from the pandemic, more drivers taking to the roads, and stockpiles drawing, most-active prices in New York are on course for a sixth straight daily advance.

That positive picture is being clouded, at least for now, by concerns that talks in Vienna between Tehran and world powers to revive a nuclear accord will pave the way for the lifting of U.S. sanctions.