Global oil demand is forecast to increase 6% this year, or by 5.5 million barrels per day (bpd), to an average of 96.5 million bpd, having contracted by 8.7 million bpd in 2020, according to the International Energy Agency's (IEA) monthly oil report on Tuesday.
The agency reviewed its previous first-quarter oil demand estimate, with a slighter higher revision to consumption, supported by cold weather in northern Asia, Europe and the US.
Also, the agency said, “a stronger economy and vaccine deployment will support growth in the second half of 2021, reducing the oil demand gap from 4.8 million bpd in the first quarter of 2021 to 1.4 million bpd in the fourth quarter.
In 2021, the highest consumption is forecast to be in the Asia Pacific region with 35.8 million barrels per day, followed by the Americas with 30.1 million barrels and Europe with 13.9 million barrels.
-OPEC production drops
The IEA said global oil supply fell by 2 million bpd in February to 91.6 million bpd after a cold snap shut in US production while Saudi Arabia made an extra cut of 1 million bpd.
Non-OPEC+ countries will see output rise by 700,000 bpd in 2021 after a 1.3 million bpd drop in 2020, it said, adding that US oil supply is set to decline by 180,000 bpd after a fall of 600,000 bpd in 2020.
OPEC crude oil production reached 24.75 million bpd in February, recording a decrease of 760,000 bpd compared to the previous month.
Non-OPEC production also saw a draw of almost 1.3 million bpd to 61.72 million bpd.
By Sibel Morrow