The International Energy Agency (IEA) on Tuesday revised global oil demand downwards by 0.3 million barrels, reports CNBC. IEA now expects world oil demand to recover by 5.5 million barrels per day (bpd) to 96.6 million this year.
- The downward revision of demand outlook by IEA follows an unprecedented collapse of 8.8 million bpd last year as the coronavirus hit global oil markets.
- IEA expects oil demand growth to fall slightly during the first three months of the year in the wake of tougher travel restrictions
- IEA has trimmed first-quarter oil demand growth forecast to 94.1 million bpd, which will see it return to near year-ago levels, reflecting a downward revision of 0.6 million bpd.
- Oil prices have rallied in recent weeks on optimism of COVID-19 vaccine rollouts and surprise production cuts by Saudi Arabia, but slow inoculations is hindering recovery
- OPEC+ had initially agreed to lower output by 9.7 million bpd, before easing it to 7.7 million, and eventually to 7.2 million from January.
- OPEC, last week, kept its 2021 oil demand forecast unchanged, anticipating growth of 5.9 million bpd year on year to an average of 95.9 million
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