Global oil consumption is now forecast to rise by 5.4 million barrels per day
(mb/d) in 2021, 270 barrels per day (kb/d) lower than in IEA’s previous report, according to the firm’s most recent IEA Oil Market Report.
Europe and OECD Americas have been revised down by 320 kb/d and 515 kb/d, respectively, in the first quarter 2021, while India’s COVID crisis led IEA to downgrade demand in the second quarter 2021 by 630 kb/d. The forecast for second half 2021 is left roughly unchanged, however, based on expectations that vaccination campaigns continue to expand and the pandemic largely comes under control.
World oil supply rose 330 kb/d to 93.4 mb/d in April and will increase further in May as the OPEC+ alliance continues to ease output cuts. Based on the current agreement, global oil production is set to grow by 3.8 mb/d from April to December. For 2021 as a whole, IEA expects world oil production to expand by 1.4 mb/d year-on-year versus a collapse