Global Oil Demand on Its Way to Recovery, Says IEA

Global oil demand on its way to recovery based on the latest forecast of the International Energy Agency (IEA), the WSJ reported Wednesday.

• The IEA raised its annual forecast for global oil demand by 230,000 barrels a day to an increase of 5.7 million barrels a day in 2021.
• The figures are still 3% short of 2019 levels, but investors will likely take this as a sign that consumption is on its way to recovery.
• The IEA trimmed its non-OPEC supply growth forecast by 90,000 barrels a day to 610,000 barrels a day in 2021, with the U.S. supply set to decline by 100,000 barrels a day after falling by 600,000 barrels a day last year.
• The Organization of the Petroleum Exporting Countries (OPEC) earlier in the week increased its 2021 demand forecast by 100,000 barrels a day.
• OPEC’s capacity of 6 million barrels a day means producers within the cartel will have the flexibility to meet changes in demand. This does not include Iran’s capacity of 1.5 million barrels a day as Tehran negotiates to revive the 2015 nuclear deal with the U.S.
• The global benchmark Brent crude was up 1% at $64.32 a barrel, while the West Texas Intermediate futures climbed 1.2% to $60.87 a barrel on Wednesday.