ertgettere Oil Price Rises to Two-Year High as OPEC

[Free21]

Oil prices hit multiyear highs above $70 a barrel after OPEC and its allies forecast higher demand and boosted output—punctuating a global economic reawakening that has raised the prices of a broad range of commodities.

The move by a group of oil producers led by Saudi Arabia and Russia amounted to a continued unwinding of steep cuts they made at the start of the pandemic. Recent oil-price milestones come alongside similar ones hit by commodities from tin and copper to lumber. They have all soared too amid pent-up demand that has producers of the stuff struggling to keep up.

“It is a good, old-fashioned reflation trade,” said Tom Price, head of commodities strategy at investment bank Liberum, describing expectations of a burst of economic activity that boosts assets. Mr. Price said such a broad grouping of commodities hasn’t risen simultaneously for so long since the economic recovery that followed the 2008-09 financial crisis.

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