The International Energy Agency says the global energy market is on its way to recovery despite challenges in vaccinations, reports the Wall Street Journal. IEA raised the global oil demand in 2021 by 230,000 barrels a day, to an increase of 5.7 million barrels a day.
IEA cited the International Monetary Fund’s improved forecasts for economic growth this year, despite recovery remaining fragile.
IEA forecasts come days after the Organization of the Petroleum Exporting Countries raised the 2021 demand forecast by 100,000 barrels a day.
While IEA’s forecasted demand is 3% short of 2019 levels, investors are likely to take the agency’s increased demand forecast in the final quarter of 2021 as a sign of demand recovery.
On Wednesday, Brent Crude gained 1% at $64.32 a barrel, while the West Texas Intermediate futures climbed 1.2% to $60.87.
A weaker dollar, upbeat inventory figures, and hiccups in nuclear negotiations between the US and Iran also supported oil prices.
IEA was less worried about rising output from non-OPEC+ members, trimming the supply growth forecasts from the non-cartel countries by 90,000 barrels a day to 610,000 barrels a day this year.
Oil futures are currently gaining. CL! is up 1.30%.
