Global oil demand is forecast to increase 6.3% this year on the back of better economic forecasts and robust, prompt fiscal indicators, according to the International Energy Agency (IEA) on Wednesday.
Having contracted by 8.7 million barrels per day (bpd) in 2020, global oil demand is estimated to rise by 5.7 million bpd to an average of 96.7 million bpd, the IEA said in its monthly oil report.
The agency warned that the recovery remains fragile with the number of Covid-19 cases surging in some major consuming countries.
Pointing to the latest revision of the International Money Fund (IMF), which raised its forecast for 2021 GDP growth by 6%, the agency said this improved IMF outlook, swift vaccine rollouts in the US, and upcoming hefty stimulus packages in the country, as well as improving economic data from China, led to a better global oil demand forecast.
In 2021, the highest consumption is forecast to be in the Asia Pacific region with 35.9 million barrels per day, followed by the Americas with 30.3 million barrels and Europe with 13.9 million barrels.
-Global supply rises
The IEA said global oil supply increased by 1.73 million bpd in March to 92.89 million bpd mostly with the help of Saudi Arabia’s extra cut of 1 million bpd for February, March and April.
OPEC crude oil production reached 25.05 million bpd in March, recording an increase of 210,000 bpd compared to the previous month.
Non-OPEC production also saw an increase of almost 1.51 million bpd to 62.68 million bpd.
By Sibel Morrow