The recovery in global oil demand will limp along early in 2021 but should quicken in the second half of the year, as coronavirus vaccine distribution efforts make headway and travel increases, both the International Energy Agency (IEA) and the Organization of the Petroleum Exporting Countries, aka OPEC, said in new forecasts this month. 

OPEC Forecast

In its February Oil Market Report, IEA estimated that global oil demand would rise by 5.4 million b/d in 2021 to reach 96.4 million b/d, recovering roughly 60% of the volume lost to the pandemic in 2020.  

“While oil demand is expected to fall by 1 million b/d in 1Q2021 from already low 4Q2020 levels, a more favorable economic outlook underpins stronger demand in the second half of the year,” IEA researchers said.  

The Paris-based...