IEA raises global oil demand forecast 

For 2021, global oil demand is forecast to grow by 5.5 million b/d to 96.5 million b/d, recovering around 60% of the volume lost in 2020, Report informs, citing the International Energy Agency (IEA).

The IEA said the consumption appears to be slightly higher than expected in the first quarter of 2021, supported by cold weather in northern Asia, Europe, and the US. A stronger economy and vaccine deployment will support growth in the second half of 2021.

Global oil supply fell 2 million b/d in February to 91.6 million b/d after a cold snap shut in US production and Saudi Arabia made an extra cut of 1 million b/d. OPEC+ agreed to extend most of its cuts through April, with Saudi keeping its extra cut in place. Non-OPEC+ will see output rise by 700,000 b/d in 2021 after a 1.3 million b/d drop in 2020. US oil supply is set to decline by 180,000 b/d, after a fall of 600,000 b/d in 2020.