International Energy Agency trims 2021 oil demand forecast

The International Energy Agency (IEA) trimmed its 2021 global oil demand forecast Tuesday as fresh coronavirus lockdowns cloud the outlook but said mass vaccination programmes should help bolster a second half rebound.

“Global oil demand is expected to recover by 5.5 million barrels per day (mbd) to 96.6 mbd in 2021, following an unprecedented collapse of 8.8 mbd in 2020,” the IEA said in its latest monthly report.

“For now, a resurgence in Covid-19 cases is slowing the rebound but a widespread vaccination effort and an acceleration in economic activity is expected to spur stronger growth in the second half of the year,” it said.

“This recovery mainly reflects the impact of fiscal and monetary support packages as well as the effectiveness of steps to resolve the pandemic,” it added.