A glut in global oil markets is being worked off as the world economy begins to recover from the Covid-19 pandemic and as OPEC and its allies restrain production, the IEA said Wednesday.
The International Energy Agency raised its expectations for the recovery in oil demand after the International Monetary Fund increased its forecasts for global growth this year.
“This improved outlook, along with stronger prompt indicators, has led us to revise up our 2021 global oil demand growth forecast,” said the Paris-based body with advised oil consuming nations.
It now expects world oil demand to rise by 5.7 million barrels per day (mbd) to 96.7 mbd, following last year’s drop of 8.7 mbd. The OPEC oil cartel on Tuesday also raised its 2021 demand forecast to 96.5 mbd.
Oil demand was hammered last year as many countries shut down swathes of their economies in a bid to slow the spread of Covid-19.