Oil markets are starting to swing back into balance as deep cuts led by the Opec+ alliance begin to outweigh the collapse in demand. But the journey towards balance is a long one and the IEA in its first forecast for 2021 projects that demand will remain depressed out beyond the end of next year.

This highlights the need for the Opec+ alliance to stay the course with planned output restrictions stretching out to April 2022 (MEES, 17 April). A return to 2019 production levels too soon would not just slow the erosion of stock overhangs, but see stocks once again grow. (CONTINUED - 847 WORDS)