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IEA lowers 2021 global oil demand outlook amid COVID-19

IEA lowers 2021 global oil demand outlook amid COVID-19

Mubasher: Global oil demand is forecast to recover by 5.5 million barrels per day (mb/d) to 96.6 mb/d in 2021 after plunging 8.8 mb/d in 2020 due to the coronavirus (COVID-19) pandemic and lockdown.

IEA has lowered its 2021 global oil demand outlook from December's assessment amid a resurgence in COVID-19 cases and renewed lockdown measures, according to a report by the International Energy Agency (IEA).

However, the widespread vaccination and rebound in economic activities is expected to stimulate stronger growth in the second half (H2) of 2021, the IEA referred.

In addition, the global oil supply is set to increase by more than 1 mb/d in 2021, following a drop of 6.6 mb/d in 2020.

After recording 92.8 mb/d in December, global supply will rise in January with OPEC+ due to raise collective supply this month.

Moreover, global refinery is predicted to rebound by 4.5 mb/d in 2021, after a 7.3 mb/d decline last year. 

"The global vaccine roll-out is putting fundamentals on a stronger trajectory for the year, with both supply and demand shifting back into growth mode following 2020’s unprecedented collapse," the report remarked.