An improved global economic outlook is driving up expectations for the global oil demand recovery in 2021. Coupled with the ongoing vaccine campaigns this pushed both Opec and the IEA to upgrade their demand estimates this week.

One year on from the depths of April 2020’s oil price shock oil market “fundamentals look decidedly stronger” says the IEA in this month’s Oil Market Report (OMR), as it revised up its 2021 demand growth expectations by 230,000 b/d (see table 1). As well as demand picking up, “the massive overhang in global oil inventories that built up during last year’s Covid-19 demand shock is being worked off.” (CONTINUED - 851 WORDS)