Oil surges to $70 a barrel on strong demand hopes

Prices firmed up today and are expected to stay elevated despite the possible return of Iranian crude to world markets 

Oil prices firmed up today, with Brent trading near $70 a barrel, underpinned by the bright outlook for fuel demand growth in the next quarter, while investors looked ahead to the OPEC+ meeting this week to see how producers will respond.

Brent touched a session high of $69.82, while US West Texas Intermediate crude was at $66.87 a barrel, up 55 cents, or 0.8%.

'Demand will outstrip supply'

Both contracts are on track for a second monthly gain as analysts expect oil demand growth to outstrip supply despite the possible return of Iranian crude and condensate exports.

"Despite the mobility restrictions that are still in place, oil demand is recovering dynamically around the world," Commerzbank said.

The Organisation of the Petroleum Exporting Countries and their allies including Russia will meet on Tuesday.

The group known as OPEC+ is expected to stay the course on plans to gradually ease supply cuts until July.

• Reuters