In its latest monthly report, the Organization of the Petroleum Exporting Countries (OPEC) raised its forecast for global oil demand growth in 2021 to 5.95 million barrels per day (bpd) from 5.89 million (bpd) in the previous report, per Reuters.
There have been sizeable drawdowns in global inventories since mid-2020 and these are expected to continue in coming months. Bulk of 2021 oil consumption growth is expected to take place in Q2 and Q3. Summer 2021 gasoline demand is still not expected to surpass 2019 levels due to COVID-19 related challenges.
OPEC oil output rose by 200,000 bpd in March to 25.04 million bpd, driven by Iran. The organization also raises 2021 forecast for global demand for its crude by 200,000 bpd to 27.4 million bpd.
Crude oil prices edged higher after the report was released and the barrel of West Texas Intermediate (WTI) was last seen trading at $60.25, gaining nearly 1% on a daily basis.