A yr after the pandemic and a value battle sparked one of many weakest months in historical past for oil costs, the worldwide power market is nicely on its solution to restoration, the Worldwide Vitality Company mentioned Wednesday.
In its month-to-month report, the IEA raised its annual forecast for world oil demand in 2021 by 230,000 barrels a day to a rise of 5.7 million barrels a day. Earlier within the week, the Group of the Petroleum Exporting Nations elevated its 2021 demand forecast by 100,000 barrels a day.
Whereas the Paris-based group’s forecast restoration will nonetheless go away demand 3% in need of 2019 ranges, traders will doubtless take the company’s elevated demand forecast for the ultimate quarter of 2021 as an indication that consumption is on its solution to recovering.
Oil costs rose early Wednesday, extending delicate features up to now this week. Brent crude, the worldwide benchmark, was up 1% at $64.32 a barrel. West Texas Intermediate futures, the U.S. gauge, climbed 1.2% to $60.87 a barrel.
A weaker U.S. greenback, upbeat stock figures from the American Petroleum Institute and pace bumps in nuclear negotiations between the U.S. and Iran had been all buoying crude costs, mentioned Warren Patterson, head of commodities technique at ING.