18.05.202113:17 Forex Analysis & Reviews: Brent crude tops $70 a barrel! Oil prices extending dazzling rally!

On early Tuesday, global benchmark grades grew 0.9%. Brent crude leapt above the level of $70 a barrel for the first time since March 2021.

July Brent futures contracts rose 0.95% to trade at $70.12 a barrel. On Monday, such contracts closed at $69.46 a barrel, 1.1% up.

Meanwhile, WTI contracts for July delivery surged 0.97% to trade at $66.91 a barrel. July WTI futures are trading 0.41% up that is $66.54 a barrel. Yesterday, such contracts jumped 1.4% to the level of $66.27 a barrel, the highest price since April 2019.

Energy experts say that underlying reasons for the robust rally in the oil market is optimism about buoyant demand for crude in the countries with massive oil consumption such as the US.

Investors' optimism is not dented by fresh news about new pandemic outbreaks and dismal pandemic conditions in some Asian countries, including India and Japan. Market participants hope that demand for oil will be on the rise amid a progress in mass vaccination in advanced economies and a removal of a travel ban.

Experts are certain that nowadays the commodity market is focused mainly on the US, the EU, and China. Once Brent price overcomes strong resistance at $70, the door will be open to a higher level of $72 a barrel.

A revival of travel activity in the US is seen as a fresh impetus for growing demand for crude oil and petroleum products. Earlier, the US Transportation Security Administration reported that the number of passengers going through the security services in airports across the country increased to 1.85 million on Sunday that is a record figure since March 2020.

Besides, United Airlines announced that the level of bookings for the summer this year surpassed the level of 2020 by 214%. In this context, the US air company intends to add 400 flights to its daily schedule.