The Organization of Petroleum Exporting Countries (OPEC) on Tuesday held to its forecast for relatively robust oil demand in 2021, driven by expectations for increased economic activity and travel in the second half of the year.

OPEC

The cartel noted that coronavirus inoculation campaigns are gaining rapid momentum across North America, Europe and much of Asia. This is expected to diminish the impact of the pandemic and, in turn, unleash pent-up demand for fuels derived from oil as more people get back to work and travel.

For 2021, world oil demand is expected to increase by nearly 6.0 million b/d from 2020, or 7%, to average 96.5 million b/d. OPEC issued the forecast in its closely watched Monthly Oil Market Report (MOMR). Its global demand estimate is unchanged from the prior...