London (Reuters): Oil broke above $ 70 a barrel on Tuesday, extending strong gains from the previous day, as investors grew more optimistic that a trade dispute between the United States and China may be resolved without greater damage to the global economy.
Brent crude futures were up $ 1.39 at $ 70.04 a barrel by 1131 GMT, while West Texas Intermediate crude futures rose $ 1.23 to $ 64.65 a barrel.
The oil price has risen by nearly 4.5% in the last two trading days.
Oil briefly rose above $ 70 two weeks ago, after Saudi Arabia vowed it would keep an agreement in place to limit supply into next year. But the US decision to impose tariffs on $ 50 billion of Chinese goods a week later sent the price to a two-week low.